Data Analysis and Predictive Modeling

ISO delivers data analysis and predictive modeling services to help public- and private-sector customers manage their exposure to risk in areas such as fire, wildfire, other natural hazards, and terrorism.

Data analysis
ISO maintains some of the largest private databases in the United States. As a trusted intermediary for several industries, ISO has a broad array of databases and sophisticated analytical systems — and the most advanced facilities anywhere for processing data.

ISO is the largest and most comprehensive insurance statistical agent, collecting data and serving insurers and regulators in all 50 states, the District of Columbia, and Puerto Rico.

Insurers in the United States have a legal responsibility to collect statistical data about their premiums and losses — and to report that data in an aggregate form to state regulators. In every state, ISO serves as a statistical agent for many lines of property/casualty insurance. ISO acts on behalf of the regulators to collect insurer data. Insurance companies send us individual records of insurance transactions, such as premiums collected or losses incurred. ISO processes the data to produce aggregate statistics and then reports those statistics to state regulators.

ISO’s statistical database — 9.3 billion records for a wide range of lines of personal and commercial insurance — serves insurance companies and state regulators in many ways:

• provides information that lawmakers and other public policymakers use to help them answer questions related to insurance
• supplies information that regulators use to make certain that rates and risk classifications are appropriate
• reports valuable aggregated information back to insurers to help them make their own independent business decisions

Because ISO is in the business of satisfying the demands of industry experts, we are much more than a data-processing organization. ISO maintains a world-class staff that analyzes data and turns it into meaningful information to meet your organization’s needs.

Predictive modeling
ISO has developed nationally recognized models for predicting the impact of terrorism, natural disasters, and global climate events. Follow the link to Catastrophe Risk to learn more about those models.

The government and financial markets use other ISO models to quantify risk, allocate resources, and analyze the economics of risk transfer and planning.

Here’s just a sampling of the predictive models that ISO and its subsidiaries have developed:

• catastrophe and extreme-event analyses — precise and objective analyses of key issues, cited frequently in public-policy debates
• predictive and analytical models — customized to meet the needs of a variety of clients, including many state governments, state insurance regulators, state insurance departments, insurers, reinsurers, and other corporations
• econometric models — updated annually and used to supplement analyses derived from traditional ISO tools
• mathematical models — data from ISO databases and/or external data to improve industry processes
• loss costs — used to price insurance policies for all insurance lines equitably, loss costs are accurate projections of average future claim costs and loss-adjustment expenses — overall and by coverage, class, territory, and other categories

To request more information, click here or call ISO Customer Service at 1-800-888-4476.