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Explore commercial auto opportunities with three ISO solutions

A product launch can be an exciting moment for any business. But before that moment, an extraordinary amount of work happens behind the scenes, beginning with two critical questions: What are the barriers to entry? And what is the potential for profitable growth?

For example, an insurer might be looking to expand its commercial auto business into a new state. Before the insurer can begin this expansion, it must first perform extensive research to develop the product in compliance with the state’s regulations. This can be a time-consuming, arduous process for staff members, as they have to review and interpret a wide range of complex information.

Iso Electronic Rating Content Is Expanding

Once that work is done, an insurer can face two other significant challenges to get off the ground. To support all the time and effort poured into creating rates and rules, it’s crucial that accurate and timely data inform the quote. Just as important is that crucial information is delivered fast, providing for a desirable user experience that allows for swift and accurate underwriting decisions.

All of this work can be so expensive and time-consuming that the insurer may question if they have a process in place that it trusts will be responsive, resilient and competitive as they navigate a new market.

ISO Circulars Can Help, but it doesn’t end there

ISO circulars are often the first resource for insurers on their journey. The circulars contain highly detailed information, including updates to ISO’s commercial lines manuals used by many insurers today. The updates include changes to ISO’s loss costs, rules, and forms. These can be difficult to digest and implement, complicated by the fact that an average of more than 75 circulars are issued each week.

How ISO ERC Can Help

With ISO’s Electronic Rating Content (ERC), your company can save significant time in the analyze, interpret and build phases for that new product. ERC keeps users informed of regulatory changes and updates to ISO commercial lines programs, what can otherwise be an expensive and time-consuming process. This value cannot be understated, as ISO’s ERC helped cut users' workload by 60% when processing changes to circulars, reducing the amount of time spent processing these changes by 70% in one study.1

ISO’s ERC data is available through an automated maintenance feed with easy importing into rating systems, and includes easy-to-understand business documentation describing changes through Automated Release Notes. Many rating/policy administration vendors utilize ERC and have pre-integrated the product into their offering.

Working with ISO to help implement ISO circular changes has the benefit of ensuring more precise comprehension of this material, saving time on analysis and interpretation of rules, forms loss costs, and other updates.  And because the support comes directly from ISO, you can minimize the discussions between your internal users and/or outside vendor as to how to integrate the rating rule within your systems. 

Fast and Precise Underwriting

Having the updated rating content is only one part of the puzzle. You can’t rate policies without a fast and reliable way to assess the risks.

That’s where ISO Commercial Vehicle Prefill, Commercial Auto Firmographics and Risk Analyzer Commercial Auto (RACA) come in. Once a new product is developed, ISO can help insurers underwrite with speed and precision with its Commercial Vehicle and Firmographic Prefill solutions.

Manual data entry is a large component of labor costs, and can contribute to errors in the insurance application process. But just by knowing an individual or business name and address, Vehicle Prefill can quickly prefill vehicle data, including Vehicle Identification Numbers. Vehicle Prefill improves the customer experience by providing the most up-to-date vehicle information in seconds, transforming a cumbersome process into a couple simple clicks.

Commercial Auto Firmographics provides information critical to accurate underwriting and rating with verified North American Industry Classifications, Standard Industry Classification, and commercial credit score information. This service takes the guesswork out of policy level firmographic identification, and allows insurers to more accurately underwrite and price.

Not all local markets and vehicles are created equal

But not all local markets and vehicles are the same. The environment that a truck drives in and a truck’s specific features can have a significant impact on the risk.

Building upon the advisory loss costs within the ISO program, Risk Analyzer offers a much more granular and precise view. RACA Vehicle Symbols goes beyond the make, model, and year of vehicles, and incorporates special characteristics, including engine specs, cabin configuration, and axles into its analysis. The result is an enhanced approach to rate differentiation.

The RACA Environmental module also provides risk-specific data based on granular geographic features such as local traffic, weather, and commercial demographics. All considered, RACA takes rate territory tables to the ZIP Code level for even more precision.

In keeping with its approach to implementation, ERC provides the support needed to move from a traditional approach to the RACA enhancements. Carriers deploying both solutions can take on a powerful rating solution with minimal added overhead.

A recipe for success

While entering a new market can be daunting for an insurer, using a powerful combination of solutions can make the process much easier and deliver more desirable results. Leveraging with ISO ERC, Vehicle Prefill, Auto Firmographics, and RACA, insurers can more quickly develop and introduce new products with speed, efficiency, confidence and results!

Explore more strategies for Electronic Rating Content, Risk AnalyzerCommercial Auto Vehicle Prefill, and Auto Firmographics.

  1. Carnahan, Karlyn, “Does ISO ERC deliver the goods?” Celent, September 10, 2018, < >, accessed on December 18, 2020.

Mark Sheehan

Mark Sheehan is vice president, Rating Solutions at Verisk. You can contact Mark at

Diane Injic

Diane Injic is director of ISO Commercial Auto Underwriting at Verisk. Reach her at

Ralph Dweck

Ralph Dweck is senior actuarial consultant for ISO commercial lines at Verisk. You can contact him at

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