JERSEY CITY, N.J., October 12, 2011 – ISO announced today the availability of newly formatted algorithm files to accompany ISO Rating Service® and ISO Electronic Rating Content. Now, the rating data and the rules for acting upon the rating data are in formats that can be uploaded to a policy administration system. The new algorithm files provide implementation-level details for four main functions:
- premium calculations
- policy forms attachment logic
- statistical code assignment
- business edits
The ISO rating solutions teams – working in conjunction with the line and actuarial resources that publish ISO�s manuals, forms, and circulars – developed the algorithm files.
The new format provides a structured algorithmic representation of the processes for the four functions above. The algorithm files are available in MS-Excel and XML file formats.
“By laying out the step-by-step processes in a clear, structured manner, we have provided significant advantage to our customers using ISO-based insurance products,” said Kevin Thompson, senior vice president of ISO. “Reaction to date from insurers and vendors alike has been positive. Through the ease of use and level of detail provided, we feel we are paving the way for ISO Rating Service and ISO Electronic Rating Content to become the industry-standard delivery methods for ISO rating content.”
Karen Furtado, partner, Strategy Meets Action, said, “The new ISO rating algorithm presentation takes the ISO rating offerings to the next level. Presenting the interpretation of the rules through the rating algorithms gives insurers and vendors a jump start for new implementations as well as a valuable tool that can assist them in the maintenance of each line of business.”
“ISO�s new algorithm format, used by both ISO Rating Service and ISO Electronic Rating Content, is easier to understand and offers new options for automated consumption,” said John Harding, general manager, AQS. “It�s another example of ISO�s commitment to increasing value and reducing total cost of ownership. ISO worked collaboratively to gather input on the design of this improved format, and we�re excited about the results. We can see that this enhanced structure will make it easier to interpret and offer new options for automation. The AQS electronic rating content professional services group will be able to expedite implementing and maintaining our clients� ERC investment.”
“ISO Electronic Rating Content has already transformed how Camilion customers receive, analyze, and implement their ISO-based products,” said Ross Orrett, Camilion president and CEO. “The benefits have been immediate and compelling. Our customers can respond much more quickly to market changes and build products that contain the most up-to-date loss cost and regulatory information. With the latest improvements to the algorithm format, ISO has significantly improved the efficiency of the adoption process, delivering rules that are more accurate, complete, and readable by both human users and automated processes. ISO Electronic Rating Content is quickly becoming the most effective way to manage ISO changes at all phases of the insurance product development process.”
Donald Light, senior analyst at Celent, commented, “ISO�s new formatting for its ISO Rating Service and ISO Electronic Rating Content algorithm files will be welcomed by both insurers and technology vendors. The change will help insurers get to market faster and more accurately. It will also facilitate the work of the increasing number of vendors who offer update services to their policy administration insurer customers.”
“Maintaining rates, rules, and forms is a complex and labor-intensive process within an insurance carrier,” said Karlyn Carnahan, principal at Novarica. “Carriers can achieve significant cost savings by streamlining the process of analyzing and interpreting the impact of ISO changes and by simplifying the process of loading their systems with the updates.”
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, the company provides statistical, actuarial underwriting, and claims information; policy language; information about specific locations; fraud identification tools; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK). For more information, visit www.iso.com and www.verisk.com.