ISO has announced the availability of newly formatted algorithmfiles to accompany ISO Rating Service and ISO Electronic RatingContent. The rating data and the rules for acting upon the ratingdata are now in formats that can be uploaded to a policyadministration system.

The new algorithm files provide implementation-level details forfour main functions:

• premium calculations
• policy forms attachment logic
• statistical code assignment
• business edits

The ISO rating solutions teams—working in conjunction with theline and actuarial resources that publish ISO's manuals, forms, andcirculars—developed the algorithm files.

The new format provides a structured algorithmic representationof the processes for the four functions above. The algorithm filesare available in MS-Excel and XML file formats. 

"By laying out the step-by-step processes in a clear, structuredmanner, we have provided significant advantage to our customersusing ISO-based insurance products," says Kevin Thompson, seniorvice president of ISO. "Reaction to date from insurers and vendorsalike has been positive. Through the ease of use and level ofdetail provided, we feel we are paving the way for ISO RatingService and ISO Electronic Rating Content to become theindustry-standard delivery methods for ISO rating content."

"The new ISO rating algorithm presentation takes the ISO ratingofferings to the next level," says Karen Furtado, partner withStrategy Meets Action. "Presenting the interpretation of the rulesthrough the rating algorithms gives insurers and vendors a jumpstart for new implementations as well as a valuable tool that canassist them in the maintenance of each line ofbusiness." 

"ISO's new algorithm format, used by both ISORating Service and ISO Electronic Rating Content, is easier tounderstand and offers new options for automated consumption," saysJohn Harding, general manager, AQS. "It's another example of ISO'scommitment to increasing value and reducing total cost ofownership. ISO worked collaboratively to gather input onthe design of this improved format, and we're excited about theresults. We can see that this enhanced structure will make iteasier to interpret and offer new options for automation."

"ISO Electronic Rating Content has already transformed howCamilion customers receive, analyze, and implement their ISO-basedproducts," says Ross Orrett, Camilion president and CEO. "Thebenefits have been immediate and compelling. Our customers canrespond much more quickly to market changes and build products thatcontain the most up-to-date loss cost and regulatory information.With the latest improvements to the algorithm format, ISO hassignificantly improved the efficiency of the adoption process,delivering rules that are more accurate, complete, and readable byboth human users and automated processes."

Donald Light, senior analyst at Celent, comments, "ISO's newformatting for its ISO Rating Service and ISO Electronic RatingContent algorithm files will be welcomed by both insurers andtechnology vendors. The change will help insurers get to marketfaster and more accurately. It will also facilitate the work of theincreasing number of vendors who offer update services to theirpolicy administration insurer customers."