Spring 2014

Verisk Review is a journal of ideas and opinions from Verisk Analytics. The publication provides expert commentary on the science of risk, including risk management, predictive analytics, property/casualty insurance, catastrophe management, fraud prevention, and a wide range of other topics. Please see our multimedia section for the latest videos and podcasts by Verisk experts.

On the Confluence of Business Information and Technology: The Best Is Yet to Come

Scott G. Stephenson

Verisk Analytics

To paraphrase Ernest Hemingway, the laws of business and technology are as immutable as those of flight, of mathematics, of physics. That said, taken together, these three laws of business today might truly suggest the best of business agility is yet to come — in large part due to the confluence of information, technology, and actionable insight.

Digital Engagement: Are Carriers Dressed for Digital Success?

Dr. Henna Karna

Verisk Digital Services

Answers to common questions about what it means for carriers to embrace digital, and how doing so will enhance service to policyholders and drive operational effectiveness.

Opportunities in a New Compliance Paradigm

Shawn R. Deane

ISO Claims Partners

Carrie Barr

ISO Claims Partners

A tremendous opportunity is available in MSP compliance because of recent changes to reporting and recovery involving Medicare contractors, new technologies and reporting capabilities, and a more integrated approach to compliance. The shift is toward a holistic program that involves integrating compliance points — namely Section 111 reporting and the conditional payment process — into a unified approach. This two-part article first provides the history behind Medicare conditional payment compliance and Section 111 reporting, and it then describes how to develop a holistic and programmatic approach to Medicare Secondary Payer obligations.

Lessons From the Battle of Mobile Bay

Stephen C. Clarke

ISO

While most people have never heard of the Battle of Mobile Bay, many are familiar with the words attributed to Admiral Farragut at the start of the engagement: "Damn the torpedoes, full speed ahead." The modern interpretation of that phrase is to proceed without concern for risk, but Farragut's planning, strategy, and leadership in the Battle of Mobile Bay offers lessons for risk managers fighting the Battle of Emerging Risk. What kind of risk management admiral will you be?

Slideshow: The Current and Future State of Predictive Analytics

To determine how insurance companies are leveraging predictive analytics, Earnix and ISO conducted a joint industry survey last September titled "2013 Insurance Predictive Modeling Survey." The survey provides insights on how insurers are successfully using predictive analytics, resources that enable their efforts, and where and how carriers are applying those initiatives to overall business performance.

Ask the Experts

Patricia Prial

Verisk Insurance Solutions – Commercial Property

ISO offers risk assessment services and decision analytics to professionals in many disciplines throughout the property/casualty insurance industry. Read these expert responses from the ISO team to timely questions concerning cyber protection, usage-based insurance, summertime risk exposure, and much more.

Trading Places: Transforming Personal and Commercial Lines through Loss Control

Jim Weiss

ISO Insurance Programs and Analytic Services

Complex, multimillion-dollar commercial lines risks arguably justify greater preventive handling — because of their catastrophic risk potential — than those of private individuals. But a funny thing has happened as personal lines insurers have accrued ever more predictive capabilities: They've begun to derive insights that — if effectively communicated back to policyholders — can help prevent the very losses being predicted, thereby reducing premiums. In other words, PL is beginning to look more like CL.

The Evolution of Managing Risk in Commercial Real Estate

John P. Heffernan

Verisk Commercial Real Estate

The roots of risk management as it relates to the physical characteristics of commercial and multifamily real estate date back to the early 1970s. At that time, the appraisal, commercial property insurance, construction, and engineering industries actively began to seek ways in which to improve their respective areas of service. Further motivated by natural catastrophes and economic realities, risk management in commercial real estate has come a long way over the last four decades.

Getting Actionable Insights from a Box Full of Data

Phil Hatfield

ISO Insurance Programs and Analytic Services

Many executives know they collect a lot of data; spend a lot of time, energy, and money buying new hardware and software; catalog the data; extract it from existing databases; and put it into a new single data resource — and have a vague sense that they aren't getting as much benefit from their data as they should. Why? Four steps enable the process of getting actionable insights from data, but they're often inadequately executed.

An Analysis of Fire Service Trends and Impacts

Rick Stoll

ISO Community Analytic Services

Flashback to 1973: The National Commission on Fire Prevention (NFPA) and Control delivered a powerful report that asserted, "Appallingly, the richest and most technologically advanced nation in the world leads all the major industrialized countries in per capita deaths and property loss from fire." Fast forward to today: The efforts since that time and other changing dynamics have resulted in the four major fire service trends detailed here.

What Will Happen When
the Big One Strikes?

Bill Churney

AIR Worldwide

No earthquake in the past 20 years has come close to the level of damage that the Northridge quake caused. What would losses from the "Big One" look like if it were to strike today? While it's impossible to predict the exact scenario, probabilistic modeling, still in its infancy 20 years ago, can now provide insight into compelling ways to improve the value proposition of insurance while keeping short- and long-term financial objectives in mind.

 

Multimedia

Emerging Risks: Going Green

In this interview with Insurance Journal, Stephen Clarke, assistant vice president of ISO's Government Relations Division, discusses the importance of understanding the potential risks of going green to avoid unintended consequences.

Agency Perspectives: Agent Tools Help with Risk, Accounts

Steven Di Peri, business development manager, Risk and Compliance at Verisk Analytics, recently spoke to AMBestTV in Denver during the RIMS 2014 conference. Di Peri explained how independent agencies will remain relevant and grow their business in the age of the digital distribution channel.

Supply Chain Risk Is the Next Predictive Modeling Opportunity

David Shillingford, president of Verisk Crime Analytics, spoke to AMBestTV during the RIMS 2014 conference in Denver. Shillingford discussed how supply chain risk is the biggest risk transfer opportunity facing the insurance industry today. "Better analyzing the risks means bringing together insurers, risk managers, and supply chain managers," he said.

Telematics and Predictive Modeling Will Evolve Risk-Adjusted Supply Chain Optimization

David Shillingford, president of Verisk Crime Analytics, spoke with WRIN.tv during the 2014 RIMS Conference in Denver about ways to assess and manage supply chain risk.

Emerging Risks: Cyber Liability

In this interview with Insurance Journal, Shawn Dougherty, assistant vice president of Specialty Commercial Lines at ISO, discusses risks and insurance coverage issues surrounding cyber liabilities.