ISO has received approval of its filings introducing new ISORisk Analyzer Homeowners by-peril rating rules in 13 states, withfilings pending approval in several other states. The new optionalrules provide by-peril rating relativities for key homeownersrating variables.

When used in conjunction with the current ISO Risk AnalyzerHomeowners environmental rating rules, insurers can benefit frommore in-depth by-peril analysis of the homeowners risks withintheir book of business.

Both the by-peril rating rules and the combined all-perilsenvironmental rating rules use output of ISO Risk AnalyzerHomeowners, a predictive model that develops expected losses at amuch more refined geographic level than traditional territories.With this latest enhancement, ISO Risk Analyzer Homeowners nowmakes available rating relativities by individual peril for severalimportant homeowners rating factors, including Coverage A amount ofinsurance, deductible, and age of construction. There are nineperil categories: fire, theft and vandalism, lightning, liability,wind, water (non-weather related), water (weather related), hail,and all other perils (excluding hurricane and earthquake).

"The new optional by-peril rating rules offer increasedflexibility for insurers that want to look at the effects of perilsindividually and perform their own by-peril analysis," says KevinThompson, president of ISO Insurance Programs and AnalyticServices. "By predicting expected losses at the policy level byperil, ISO Risk Analyzer Homeowners helps insurers evaluatehomeowners risks with greater precision and thus enhanceaccuracy."

Insurers also have the option of using only the combinedall-perils environmental rating rules, which have been availablesince June 2011.

ISO is filing the by-peril rating rules for insurers to use ifthey elect to license and adopt them. ISO Risk Analyzer Homeownersis part of the ISO Risk Analyzer suite of predictive modelingtools. Leveraging the data and predictive modeling expertise of ISOand data from external sources, ISO Risk Analyzer Homeownersprovides insurers the flexibility to assess and refine homeownerspolicies with one set of analytic tools.

The suite also includes ISO Risk Analyzer Personal Auto forevaluating personal auto risks and ISO Risk Analyzer CommercialAuto for analyzing two major classes of commercial auto risks:local/intermediate trucks, tractors, and trailers (TTT) and privatepassenger types (PPT).