FLINT, MI, and JERSEY CITY, NJ, December 9, 2021 – Pioneer State Mutual Insurance Company is transforming its property underwriting with advanced analytics from Verisk on the fire protection capabilities of local communities throughout Michigan.
By integrating data from Verisk’s Public Protection Classification (PPC®) program, Pioneer State Mutual will leverage multifactor grading of properties based on fire department response effectiveness, emergency communications capabilities, water supply adequacy and community fire mitigation efforts.
The PPC data is being delivered through Verisk’s LOCATION suite of solutions, which provides address-level information on a variety of risks and includes the only national database of recognized hydrants and alternative sources of firefighting water.
"As we continue to fuel our digital transformations, leveraging the industry's most longstanding and robust fire protection data points from Verisk will help us better serve our customers and improve our competitive position in the market," said Jason VanSteenburg, vice president and director of marketing at Pioneer State Mutual.
Unique risk metric is up to nine times more predictive of future fire loss
PPC combines information encompassing more than 1,000 unique data elements to deliver a risk metric that Verisk research found to be nine times more predictive of future fire loss than solely distance to fire station and over three times more predictive than fire station type alone.
"Our analysis has shown that the nearest fire station is not the primary responding fire station about 20 percent of the time. It’s one of many ways properties can be misclassified in terms of fire protection, which can lead to mispriced risk and adverse selection," said Doug Caccese, president of ISO Personal Lines at Verisk. "By assembling more than 1,000 unique data elements, PPC can help carriers like Pioneer State Mutual gain a more precise view of property risk, refine pricing and enhance the customer experience."
In addition to unique data, Verisk offers deep domain expertise that helps turn data into meaningful insights. Digitized files and state-of-the-art geographic information system (GIS) technology help Verisk provide granular, up-to-date PPC information. The underlying data passes through Verisk’s deep bench of in-house experts in the fire service, who have built decades-long relationships with fire chiefs, water authorities and other local government officials.
The LOCATION suite of solutions covers an array of address-level property data for insurers: building code adoption and enforcement, crime, latitude/longitude, premium tax, sinkhole, and territories. Also included are catastrophe management tools related to flood, hail and wildfire.
To learn how Verisk can help prevent PPC misclassification for insured risks, visit www.verisk.com/ppc.
Verisk (Nasdaq:VRSK) provides predictive analytics and decision support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook, and YouTube.
About Pioneer State Mutual
Pioneer State Mutual is a Michigan-based insurance company, headquartered in Flint, Michigan, that has been exclusively "Insuring Michigan" since 1908. The company has almost 200 employees and roughly 180,000 policyholders, writing over $260 million in direct written premium through approximately 220 Independent Agency partners.