Verisk, the global data analytics and technology provider, has launched ISO Experience Index, a tool which is designed to modernise how actuaries in the insurance industry analyze risk patterns.
According to the announcement, the tool will address the increasing volatility and scale of loss patterns seen across the industry.
It’s important to highlight, that the release of this tool comes after the insurance industry exceeded loss ratio levels that had not been seen in nearly two decades, with an estimated $21.2 billion reported in underwriting losses in 2023.
From what we understand, the new index helps insurers assess risk patterns, make informed pricing decisions, and adapt to changing market conditions.
As well as this, it will offer quarterly releases and streamlined data adjustments, with more frequent updates compared to traditional loss cost reviews.
Verisk also noted that the Index will provide carriers with current information and contextual insights beyond the annual review cycles.
Saurabh Khemka, 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 play a key role in helping illuminate longer-term patterns with its multi-year view.
Khemka, added: “This index provides insurers with timely indicators to prioritize 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.”
