Verisk Insurance Solutions has released the Class Insight ratio,a new capability to help carriers fine tune risk estimation forclass-rated properties.
|“Rating segmentation enhances competitiveness in insurance,”says Kevin Thompson, president of ISO Insurance Programs andAnalytic Services. “Carriers need to know more than just a range ofinformation. They want to segment with the greatest level ofprecision possible to remain competitive. That's what Class Insightis designed to provide.”
|In class-rating, properties that share the same characteristicsand features receive the same loss cost, averaged over all risks inthat class. Class Insight provides a more precise individual riskevaluation to enhance the class-rated loss cost.
|The software is developed in part through an on-site surveyperformed by one of Verisk's 450 field representatives. They assessconstruction, occupancy, special hazards, and fire mitigationsystems for the property, among many other factors. Thatinformation is analyzed against Verisk's ProMetrix database of morethan 3.5 million site-surveyed commercial properties.
|“When a carrier uses a class-determined loss cost, it's theaverage of all the properties that fell within a range,” said BillRaichle, president of Verisk Insurance Solutions – CommercialProperty. “But carriers looking for precision want more than aclass average. Now we're able to provide important insight on whereit falls in that range, and a carrier can underwrite it ascompetitively as possible to avoid adverse selection and maximizeprofitability.”
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