JERSEY CITY, N.J., May 19, 2014 — ISO announced today the expansion of its ISO Risk Analyzer® Personal Auto suite of predictive modeling tools to include a new module to help with determining vehicle liability risk. The new module joins its counterpart for physical damage, providing insurers with a powerful pairing of pricing refinement tools for their vehicle rating programs. ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK).
Because the characteristics of a vehicle are a major factor in determining the liability risk associated with insuring it, the vehicle module for liability analyzes loss experience along with data on individual vehicle attributes, such as body style and dimensions, vehicle performance and safety features (including ratings from the Insurance Institute for Highway Safety), and information related to the manufacturer’s suggested retail price (MSRP). In doing so, the module can produce Symbols in detail down to the vehicle level — not just the vehicle series level — for model years 1981 to the present.
“The new vehicle module for liability is a significant development because, until now, the rate level available to insurers was the same for all vehicles within a particular vehicle series,” said David Cummings, senior vice president, ISO Insurance Programs and Analytic Services.
“Using the liability module, we can see that specific characteristics, such as performance and safety features, of vehicles within the same series can affect the risk. For example, when comparing a two-wheel-drive SUV with an all-wheel-drive SUV within the same series, we’re seeing different model output for the two vehicles.”
The new vehicle module for liability provides Symbols and analytical output — in the form of components — that insurers can use as a basis for enhancing their own vehicle-level modeling and analysis for five coverages: bodily injury, property damage, personal injury protection, medical payments, and single limit liability.
ISO has filed ISO Risk Analyzer Personal Auto Vehicle Liability Symbols with insurance regulators in 36 states. As of today, the filing has been approved or acknowledged in 28 states. ISO will be filing in additional states in the coming months. The filings introduce an alternative rating rule that insurers can adopt after they license the module.
ISO will deliver the new Symbols and components through VINMASTER®.
“Delivery of the vehicle module for liability through VINMASTER makes it easy for our current Symbols customers to implement the new tool with minimal IT involvement and begin using it right away,” said Neil Spector, president, Verisk Insurance Solutions – Underwriting. “The ease of locating a correct Symbol by either VIN or the vehicle description makes VINMASTER a powerful tool, whether quoting a rate or renewing a policy.”
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, the company provides statistical, actuarial underwriting, and claims information; policy language; information about specific locations; fraud identification tools; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK). For more information, visit www.iso.com and www.verisk.com.