ISO Risk Analyzer® Homeowners

Determining homeowners risk, peril by peril
ISO Risk Analyzer® Homeowners is a powerful analytic tool that uses predictive modeling to examine hundreds of indicators that can affect your homeowners risks and predict the noncatastrophe portion of expected losses at the policy level by peril.

ISO Risk Analyzer Homeowners is a set of models that determine expected losses by major peril, including wind, fire, lightning, liability, theft and vandalism, hail, weather-related water, and nonweather-related water. For all other perils, the predictive modeling tool combines them as a single peril.

For each peril, ISO Risk Analyzer Homeowners looks at the effect of individual components on frequency and severity. Component examples include weather, physical environment, and building characteristics.

To determine expected losses by peril, the predictive model pinpoints a risk’s characteristics based on the attributes of the home and street address. (Most other models can drill down only to the ZIP-code or ZIP-cluster level.) The model then analyzes the interactive effects of hundreds of possible variables that contribute to the exposure of the risk. For each risk, you get an evaluation based on the most relevant and predictive insurance risk factors for that particular address and features of the home.

You can use the output of ISO Risk Analyzer Homeowners as stand-alone analytics to help classify, segment, and price your homeowners risks with confidence. Or you can use the model’s detailed output for each peril and major component of risk to enhance your current analytic solution to better meet your objectives.

Robust, stable model provides macro view of market
Unlike other models that optimize a single insurer’s book of business at a given point in time and provide a narrow view, ISO Risk Analyzer Homeowners is designed for use by any insurer. To provide a macro view of the market, the ISO Risk Analyzer Homeowners model uses vast amounts of data across the market from both insurance and noninsurance sources.

To produce predictions of expected losses for homeowners risks, ISO Risk Analyzer Homeowners accesses many industry and third-party data sources, including:
• statistical data and loss cost information representing 40 percent of the homeowners market
• property and hazard information from LOCATION®, including information on distance to bodies of water
• third-party information, such as census, weather, and business location data

This comprehensive approach provides a more robust, stable model that requires minimal retuning to accommodate changing objectives and requirements.

For more information . . .
. . . on the ISO Risk Analyzer suite of predictive modeling solutions, call Dale Halon at 614-895-8806, or send e-mail to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .