ISO Offering Scoring Model for Small-Business Risks

April 11, 2005

ISO has introduced ISO Score Small Business Underwriting, an analytical model that can reportedly be used to improve loss predictability when underwriting small-business risks.

ISO Score predicts the likelihood of loss for individual risks by assigning a score of 100 to 1,000 — with 1,000 representing the least likelihood of loss. ISO Score is based on relationships revealed by linking insurer policy and loss data with external data, such as weather, crime and business financial information. In addition to generating a score, the model notes the key variables, such as weather, crime or business financial data, that most influenced the score.

“We developed ISO Score in response to numerous insurer requests for a scoring product for small commercial risks, as no industry solution was available,” said Kevin Thompson, senior vice president – Insurance Services.

ISO Score may be used for underwriting apartments, condominiums, small retail and wholesale outlets, offices and service establishments, fast-food restaurants, limited-cooking restaurants and artisan contractors.

The ISO executive noted ISO Score enables insurers to empower junior underwriters to write risks that achieve a certain scoring level. Risks that require review by more senior underwriters can then be segregated so that the company would maintain a consistent underwriting standard, while realizing the benefits of automation and cost reduction.

ISO Score can be accessed via ISO Passport, ISO’s web-based interface, or through a high-volume batch option to integrate the information into a carrier’s automated processing system.

It is also available via ISO’s Specific Property Information (SPISM) service over the Internet. In addition, ISO can develop a custom application program interface allowing a carrier to link its system directly to ISO’s.

For more information on ISO Score, send an e-mail to

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