Verisk Introduces Class Insight Solution to Evaluate Commercial Property Risks

Verisk Insurance Solutions has released the Class Insight ratio, a new capability to help carriers fine tune risk estimation for class-rated properties.

“Rating segmentation enhances competitiveness in insurance,” says Kevin Thompson, president of ISO Insurance Programs and Analytic Services. “Carriers need to know more than just a range of information. They want to segment with the greatest level of precision possible to remain competitive. That's what Class Insight is designed to provide.”  

In class-rating, properties that share the same characteristics and features receive the same loss cost, averaged over all risks in that class. Class Insight provides a more precise individual risk evaluation to enhance the class-rated loss cost.

The software is developed in part through an on-site survey performed by one of Verisk's 450 field representatives. They assess construction, occupancy, special hazards, and fire mitigation systems for the property, among many other factors. That information is analyzed against Verisk's ProMetrix database of more than 3.5 million site-surveyed commercial properties.  

“When a carrier uses a class-determined loss cost, it's the average of all the properties that fell within a range,” said Bill Raichle, president of Verisk Insurance Solutions – Commercial Property. “But carriers looking for precision want more than a class average. Now we're able to provide important insight on where it falls in that range, and a carrier can underwrite it as competitively as possible to avoid adverse selection and maximize profitability.”