PriyaPatel
TLDR:
Verisk has launched the ISO Experience Index to help insurers quickly assess changes in risk patterns and the cost of insuring risk. The index provides responsive and up-to-date indicators of observed underwriting experience, offering insurers frequent updates and real-time insights. This tool aims to empower insurers to make informed decisions in a rapidly changing market, ultimately saving them time, effort, and resources while driving profitability.
Key Elements:
In response to the insurance industry’s need to address increasing volatility and scale of loss patterns, Verisk has launched the ISO Experience Index to provide insurers with a responsive and up-to-date indicator of observed underwriting experience. The index offers frequent updates and real-time insights, enabling insurers to accelerate pricing decisions and confidently evaluate market conditions. This benchmarking tool provides quarterly releases and streamlined data adjustments, maintaining consistent methodology across different states for uniform measurement.
The fourth quarter of 2023 saw the countrywide Experience Index for Homeowners rise by 2.5% compared to the previous quarter, highlighting recent trends in risk patterns. The index also offers a multi-year view, revealing a 17.2% increase in pure premiums for the fourth quarter of 2023. Available on existing product delivery platforms, the ISO Experience Index initially provides loss level metrics by state for Homeowners, with expansion to other key lines of business expected soon.
Saurabh Khemka, co-president of underwriting solutions at Verisk, emphasized the importance of empowering insurers to react quickly and effectively to changing market conditions with the new Experience Index. The tool provides insurers with timely indicators to prioritize in-depth analysis, resource allocation, and pricing activities, ultimately enabling carriers to make informed decisions and formulate responsive strategies with increased confidence.
