Specific environmental attributes surrounding the businesses you insure can have markedly different effects on losses. Two businesses of similar type, size, and construction located in different areas of the same territory can be exposed to different hazards. For example, differences in elevation can affect loss propensity due to wind and precipitation.
The new ISO Risk Analyzer® Businessowners Environmental Module is a sophisticated analytic tool that uses predictive modeling based on location-specific data to help you classify, segment, and price your businessowners risks with more precision. The module examines information related to the geographic attributes of a risk’s location to provide expected loss costs by peril. The module also incorporates the effects of relationships among different geographic data elements, such as weather and local concentrations of businesses.
By examining how specific environmental variables can affect each peril group’s contribution to the total loss cost, the new module gives insurers a more precise way to analyze loss exposure, identify the key drivers of loss costs, and develop premiums more appropriate to individual businesses.