Verisk Launches First-of-its-Kind Insurance Index to Better Inform Pricing Decisions

Core Insights - The ISO Experience Index is a new benchmarking tool for insurers that provides timely insights to enhance pricing decisions and market evaluations [1][8] - The index offers quarterly updates and consistent methodology across states, allowing for uniform measurement and more frequent data adjustments compared to traditional loss cost reviews [2][3] Industry Trends - The ISO Experience Index for Homeowners showed a 2.5% increase in the fourth quarter of 2023 compared to the previous quarter, marking a reversal from the decline in the third quarter [3] - The index is 3.4% higher than the end of 2022 and 24.4% above the level at the end of 2021, indicating significant fluctuations in loss levels across different markets [3][4] Risk Management - The index provides insurers with timely indicators for resource allocation and pricing activities, enabling informed decision-making in changing geographic markets [4][9] - A rolling five-year analysis reveals a 17.2% increase in pure premiums for the fourth quarter of 2023 compared to the preceding five-year period, highlighting the impact of severe weather events on property insurance [4] Company Overview - Verisk is a leading data analytics and technology partner for the global insurance industry, focusing on improving operational efficiency, underwriting, claims outcomes, and risk assessment [5] - The ISO Experience Index is now available on existing platforms for eligible subscribers, initially focusing on Homeowners, with plans for expansion to other lines of business [10]