Verisk, a global data analytics and technology provider, has unveiled a substantial update to its ISO Businessowners (BOP) program, aiming to assist insurers in adapting to the dynamic landscape of contemporary business risks.
As businesses continue to evolve in response to economic and technological shifts, this enhancement to the ISO BOP program is poised to be one of the most significant in recent memory.
This update comes at a critical juncture, given the creation of over 300,000 new small businesses annually in four of the past five years, underlining the program’s relevance and importance to the insurance industry.
The enhanced ISO Businessowners (BOP) program by Verisk is set to provide insurers with a comprehensive toolkit for navigating the evolving landscape of business risks.
With the addition of 160 new classifications and updated 2022 NAICS codes, insurers will benefit from an expanded and contemporary classification system that enables a more thorough and up-to-date evaluation of risk factors, aligning seamlessly with the ever-changing nature of today’s businesses.
Furthermore, the introduction of new rules and advisory prospective loss costs addressing hired and non-owned automobiles and drones reflects the increasing significance of these technologies in modern business operations.
This update also brings complementary classifications into play, designed to work in synergy with Micro-BOP and ransomware coverage exclusions. This holistic approach to risk assessment empowers insurers to respond effectively to emerging challenges.
Insurers are encouraged to leverage Verisk’s Businessowners program’s enhanced classifications to enhance their operational efficiency, reduce premium leakage, and improve the precision of risk assessment for both current and future challenges.
Neil Spector, President of Underwriting Solutions at Verisk, emphasised the importance of adaptability in the insurance sector, stating, “The insurance world is constantly changing, and we’re uniquely positioned to lead the industry through that change. That’s why we regularly review our offerings and continuously reach out to our customers for feedback. The resulting enhancements to our classifications more accurately reflect the evolving needs of the market and will continue to help drive the industry forward.”
In addition to the enhanced classifications, Verisk offers support to insurers facing implementation challenges and navigating actuarial and regulatory complexities in developing and customising a BOP program.
Insurers can tap into Verisk’s Insurance Consulting services as a valuable resource. Furthermore, Verisk’s ISO Rating-as-a-Service (RaaS) provides another tool to facilitate the implementation of these changes.
This cloud-based rating solution allows insurers to access rating results via a smart application programming interface, streamlining the rating process without the need for in-house installation or maintenance of Verisk rating content or a proprietary rating engine.