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Report: ‘Significant upgrade’ enhances Verisk rating content

Verisk is revolutionizing how its subscribers interact with rating content by rolling out what research firm Celent is calling a “significant upgrade”1 to ISO Electronic Rating Content™ (ERC™). The next-generation ERC solution offers several major enhancements, including cloud-based Rating-as-a-Service (RaaS), a smart API user interface, and under-the-hood technology upgrades that help reduce the use of scarce IT resources.

Next Generation Of Iso Electronic Rating Content

The next-generation ERC solution offers several major enhancements, including cloud-based Rating-as-a-Service (RaaS), a smart API user interface, and under-the-hood technology upgrades.

Updating rating content has historically been one of the most time-consuming and labor-intensive tasks performed by insurers, but it’s critical for incorporating the critical changes to loss costs, rules, and coverages that can directly affect premium and profitability.

When ISO ERC was released a decade ago, automating rating content transformed insurers’ workflows—shrinking the time required to make a typical change by 63 percent.2 Research has shown that ERC subscribers are also more likely to make ISO changes on the spot rather than waiting to bundle them in periodic updates several months later.3 This is significant because swiftly enacting a 3 percent rate increase on a $100 million renewal book of business, for example, could mean collecting an extra $250,000 a month in premium—or $3 million a year.

Even as ERC is helping insurers dramatically improve efficiency, today’s increasing customer expectations for speed have accelerated the need for additional innovations. Verisk on average releases more than 75 circulars each week to update ISO content. And up-to-date information is more vital than ever as the nature of hazards is constantly evolving to include new risks from emerging perils, such as cyberattacks.

A ‘significant upgrade’

The next-generation ERC solution offers multiple enhancements designed to provide greater ease-of-use, accuracy, and efficiency. A new Celent Solution Brief and recent webinar highlight the features, functions, and value propositions associated with the update that “provide substantial value to ERC users,” including:

Flexibility: Demand for cloud-based software solutions is rising, and offering ERC content via RaaS gives subscribers new flexibility in consumption. Insurers who prefer machine-readable content in XML files or human-readable content in HTML files will also find those options newly enhanced. Using APIs to access ERC content gives insurers the ability to quickly change pricing, underwriting, and other policy operations.

Efficiency: Improvements in data structure—such as having rules in a single location—and automatic sequencing of rating algorithms can help simplify staff work. IT resource needs can also be lessened with file sizes reduced by what Celent calls an “impressive” 90 percent, making it easier to integrate new content. Testing and validation time is also significantly shortened because the RaaS environment can be used as a test validation suite for quicker deployment into production.

Agility: ERC subscribers can make a rating call and receive results without installing or maintaining ISO rating content in their environment. Improved rating algorithms make it easier for insurers to adopt ISO Loss Costs, ISO Rules, and ISO Forms or efficiently modify them with their own customer deviations.

Learn more about the next generation of ISO Electronic Rating Content by watching the webinar on-demand and downloading the Celent Solution Brief.

Mark Sheehan

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

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  1. “Next Generation Verisk ISO ERC Solution: Digital Access to ISO Loss Costs, Rules, and Forms,” Celent, 2021, <>
  2. “Does ISO ERC Deliver the Goods?,” Celent, 2018, <>
  3. Ibid.

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