Nov. 4, 2011—Verisk Analytics on Friday announced it has completed its filing of the ISO Risk Analyzer Personal Auto Symbols for Physical Damage in 47 states, and has received approval in 26 states.
The filing activity is complete in all states where Verisk's ISO subsidiary has a filed personal auto program—except for Michigan and Virginia, where ISO anticipates filing shortly, according to Verisk.
Verisk said the new ISO Risk Analyzer Personal Auto Symbols introduce the use of predictive analytics based on vehicle characteristics statistically related to insurance loss.
ISO, a provider of information about property and casualty insurance risk, produces its symbols using the ISO Risk Analyzer Personal Auto Vehicle Module for Physical Damage—an analytic tool that uses vehicle characteristics to predict collision and comprehensive losses at a highly refined level, according to Verisk. The filings introduce an alternative-rating rule that insurers can license and adopt, according to Verisk.
"These filings will pave the way for companies to use the insights from our work in predictive analytics," said Scott Stephenson, president of Verisk Analytics. "The filing of ISO Risk Analyzer Personal Auto Symbols provides a basis for regulators to examine and approve the results of our modeling efforts. Insurers can rapidly adopt the new symbols based on our filings. Other insurers using our modeling results to enhance their own proprietary efforts will benefit from knowing that our products have passed regulatory scrutiny."
Verisk said the ISO Risk Analyzer Personal Auto Vehicle Module for Physical Damage also provides analytical output that insurers can use as a basis for enhancing vehicle-level modeling and analysis.
"We're pleased to make available the power of our predictive analytics research to insurers as both a turnkey solution in the form of symbols and as a tool for the development of independent rating systems in the form of components," said David Cummings, vice president and chief actuary for ISO Innovative Analytics. "As with all the products in our ISO Risk Analyzer suite, this demonstrates our awareness of the need for ISO products to fulfill many different levels of insurer needs in today's competitive insurance marketplace."
ISO provides statistical, actuarial, underwriting and claims information for insurers, reinsurers, agents, brokers, insurance regulators and risk managers. It also provides policy language, fraud-identification tools and technical services. For more information, visit iso.com.
Verisk Analytics is a provider of risk information to professionals in insurance, healthcare, mortgage, government and risk management. The company provides predictive analytics and decision-support solutions in fraud prevention, actuarial science, insurance coverage, fire protection, catastrophe and weather risk, and data management. For more information, visit verisk.com.
