Verisk has stated that the tool will address the increasing volatility and extent of loss patterns observed across the industry.
The release of ISO Experience follows a period in which the insurance industry has exceeded loss ratio levels not seen in nearly two decades, with an estimated $21.2 billion reported in underwriting losses in 2023. The new index will assist insurers in assessing risk patterns, allowing them to make informed pricing decisions and adapt to market conditions.
Moreover, the product will offer quarterly releases and streamlined data adjustments, providing more frequent updates compared to traditional loss cost reviews. Verisk highlighted that the index will provide carriers with up-to-date information and contextual insights beyond the annual review cycles.
Saurabh Khemka, (pictured) Co-President of Underwriting Solutions at Verisk, commented: “Insurance plays a pivotal role in society, and the industry has faced harsh market conditions over the last few years. Our new Experience Index is one more way we empower our clients to react quickly and effectively to changing market conditions, ultimately saving them time, effort, and resources while driving profitability. Insurers can now assess risk patterns and formulate responsive strategies with increased confidence.”
Beyond its responsiveness to the latest data trends, Verisk’s new tool will also help illuminate longer-term patterns with its multi-year view. Khemka added: “This index provides insurers with timely indicators to prioritise in-depth analysis, resource allocation, and pricing activities. It also offers a comprehensive view of changing conditions in various geographic markets, enabling carriers to make informed decisions.”
