ISO released the next generation of its ISO Risk Analyzer Personal Auto Environment Model, a predictive analytic tool insurers can use to improve territory rating of their personal auto business.
The new version's enhancements are representative of ISO's continued commitment to investing in its predictive models and analytic solutions.
"With the availability of new and updated sources, we've been able to add new variables, refresh and renew our data sets, and refine our methodology accordingly," says senior vice president of ISO Insurance Programs and Analytic Services, David Cummings. "This enhanced environmental module builds on the strengths of ISO Risk Analyzer, offering insurers even more accuracy in classifying, segmenting and pricing auto risks to improve positioning in the marketplace."
The environmental module analyzes the interactive effects of hundreds of variables in the area surrounding a vehicle's garaging address, as well as provides output for a number of components that reflect the risk factors. The model helps insures predict expected losses for risks at the policy level by major coverage. The enhanced version also incorporates new variables, such as extreme weather information, average daily traffic volume, road classifications and elevation variation, providing insurers with ore accuracy in determining a risk's loss potential.
"Our customers tell us they find significant value in the more granular information, for example, when evaluating their territory pricing, establishing rating factors, and assessing risks as part of the underwriting process," Cummings says. "They're also using the solution in their own predictive modeling efforts, including projects that involve consultants."
The ISO Risk Analyzer Personal Auto analytic suite features an environmental module, vehicle modules for liability and physical damage, and a driver history module.
"With these improvements," Cummings says, "the module has evolved to produce even stronger predictive results."
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