Monday Web Seminar Series New Insurance Program Algorithms for Efficient Implementation

T H E S C I E N C E O F R I S K SM

Policy Statement
The policy of Verisk Analytics and subsidiary companies, including ISO, is to comply in all respects with federal and state antitrust laws. With this in mind, we want to mention that during all seminars held under our auspices, the antitrust laws prohibit discussion of certain topics. Because we want to avoid even the appearance of an antitrust violation, we go beyond the letter of the law, and we will not discuss any matter that violates the spirit of the antitrust laws or could be perceived as doing so. A copy of our Policy Statement on Discussion at Meetings can be found at www.iso.com/statement.
T H E S C I E N C E O F R I S K SM

Today’s Presentation Todd Meyer Senior Sales Consultant ISO Rating Solutions T H E S C I E N C E O F R I S K SM .

Process of an Update • • • • • Analyze the ISO content Design the ISO content implementation Implement the ISO content Test the ISO content Customize for insurer-specific deviations T H E S C I E N C E O F R I S K SM .

Analysis • Determination of each circular – No change required • Example: Wording changes on the form – Algorithm changes • Algorithm creation • Check in/out of source control – Loss cost updates • Creation of Excel spreadsheets • Check in/out of source control – Form changes • • • • Form edition date Modifications within user interface New form creation Updating or changing conditional logic T H E S C I E N C E O F R I S K SM .

Implementation • Infrastructure modifications – Mapping – Constraint data – Pricing table updates • UI modifications – Required elements – Flow and validation – Conditional data capture • Algorithm modifications – Algorithm deviations T H E S C I E N C E O F R I S K SM .

Alternative for Staying Current • • • • Analyze the ISO content Design the implementation Implement the ISO content Test the ISO content • Customize for insurer-specific deviations T H E S C I E N C E O F R I S K SM .

etc. such as classification codes. Formatted file of valid form numbers and edition dates Technical specifications for calculating policy and coverage premiums Technical specifications for forms attachment logic Technical specifications for stat code assignment Technical specifications for validation rules Fully automated code for calculating policy and coverage premiums Fully automated code for forms attachment logic Fully automated code for stat code assignment Fully automated code for validation rules ISO Insurance Manuals √ ISO IntegRater™ ISO Electronic Rating Content ISO Rating Service® √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ T H E S C I E N C E O F R I S K SM .ISO Rating Product Comparison Functionality Narrative description of line of business rules and advisory loss costs (PDF. territories. or paper-based) Formatted file of advisory loss costs Formatted file of valid coverage limits Formatted file of valid deductibles Formatted file of valid additional rating data. MS-Word. legal entities.

Potential Uses of Content • Direct upload of loss costs to policy administration system (PAS) • Understand how a particular coverage is rated for purposes of analysis • Use data in your companies modeling tools • Provide your actuaries a file for analysis • Use key data to build user interface T H E S C I E N C E O F R I S K SM .

If you subscribe to ISO for participation. this is the jump start you need… T H E S C I E N C E O F R I S K SM .What Is ISO Electronic Rating Content? • ISO Electronic Rating Content is your key to building and maintaining ISO lines of business by providing implementation-level details and automated files with key rating data for upload to your PAS.

rules.ISO Electronic Rating Content • Documents ISO-interpreted advisory loss costs. and stat code assignment • Delivers automated ISO updates via ISOnet • Works with any PAS T H E S C I E N C E O F R I S K SM . forms logic.

Major Deliverables • Formatted file (MS-Excel or XML) available for upload to PAS – Required tables and their relationships. such as: • Advisory loss costs • Increased limits factors • Classification codes/descriptions • Technical specifications – – – – Premium calculations Forms attachment logic Stat code assignment logic (ISO full stat plan) Validation messages • Sample test case for each LOB/state T H E S C I E N C E O F R I S K SM . such as: • Limits • Deductibles – Valid system tables and their entries. such as: • Parent-child relationships • Fields and field sizes • Keys – Valid data entry fields.

Delivery Model = Content from ISO State Manual ISO LOB State ISO LOB Countrywide = Content from ISO Multi-State Manual T H E S C I E N C E O F R I S K SM .

What Is ISO Rating Service? • ISO Rating Service: – – – – Powerful rating engine Tool set ISO-defined rating content Ongoing maintenance T H E S C I E N C E O F R I S K SM .

forms logic. and stat code assignment • Supports company-customized rating deviations and state exceptions • Works with any industry or in-house PAS • Provides rate management reporting utilities • Streamlined delivery of ISO content updates via ISOnet • Delivers automated ISO updates T H E S C I E N C E O F R I S K SM .ISO Rating Service • A unified rating solution for ISO programs • Incorporates ISO-interpreted advisory loss costs. rules.

rounding rules. logic and edits for forms and coverages T H E S C I E N C E O F R I S K SM . loss costs.Rating Documentation Artifacts • Some of the tools provided with ISO Electronic Rating Content and ISO Rating Service: – Ratebook Reports containing ISO-defined valid values. and forms assignment rules – Algorithm files containing ISO-defined order of calculations. statistical code assignment. forms attachment.

Rates and Valid Values Electronically • Need to know the ISO loss costs for a specific ratebook release? – Create a custom file with your company’s exceptions for development – Create a file for use with your company’s modeling tools – Create a file for your actuaries to use as an analysis tool Loss costs as defined by ISO from CLM T H E S C I E N C E O F R I S K SM .

Key Rating Data in Electronic Format • Need a list of ISO territories by city for use in: – Building your company’s user interface – Creating a custom file with your company’s exceptions for development • Before ISO Electronic Rating Content. business resources had to create these files manually using the Commercial Lines Manual! Cities and territories as defined by ISO in CLM T H E S C I E N C E O F R I S K SM .

ISO-Defined Rating Calculations • Need to know how ISO rating is occurring for coverages in order to: – Confirm that your rating truly does follow ISO – Understand how a particular coverage is rated for purposes of analysis • Algorithm files containing rating rules can be downloaded in seconds for each ratebook release Each step of calculation is shown Rounding rules T H E S C I E N C E O F R I S K SM .

or mandatory Forms attachment logic for each conditional endorsement T H E S C I E N C E O F R I S K SM . conditional.Forms and Attachment Rules • • Need to know the form attachment rules for use in: – Building your user interface – Understanding the conditions in which ISO attaches forms The same algorithm files containing rating rules also contain form attachment logic Forms designated as optional.

Statistical Code Assignment • Need to know the stat assignment rules for use in: – Bureau reporting – Understanding the stat conditions for premium reporting • The same algorithm files containing rating rules also contain stat code assignment logic T H E S C I E N C E O F R I S K SM .

Eastern time – Commercial Telematics: What Are You Missing? • Visit www.com • Next event: – Monday.m.verisk.Feedback • Send feedback to: – mondaywebseminars@verisk.com/ws to register T H E S C I E N C E O F R I S K SM . March 12. 2:00 p.

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