Monday Web Seminar Series New Insurance Program Algorithms for Efficient Implementation

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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.
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Todays Presentation
Todd Meyer
Senior Sales Consultant

ISO Rating Solutions

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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

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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
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Implementation
Infrastructure modifications
Mapping Constraint data Pricing table updates

UI modifications
Required elements Flow and validation Conditional data capture

Algorithm modifications
Algorithm deviations
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Alternative for Staying Current

Analyze the ISO content Design the implementation Implement the ISO content Test the ISO content

Customize for insurer-specific deviations

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ISO Rating Product Comparison

Functionality
Narrative description of line of business rules and advisory loss costs (PDF, MS-Word, 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, such as classification codes, territories, legal entities, etc. 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

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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

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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. If you subscribe to ISO for participation, this is the jump start you need
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ISO Electronic Rating Content

Documents ISO-interpreted advisory loss costs, rules, forms logic, and stat code assignment Delivers automated ISO updates via ISOnet Works with any PAS

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Major Deliverables
Formatted file (MS-Excel or XML) available for upload to PAS
Required tables and their relationships, such as:
Parent-child relationships Fields and field sizes Keys

Valid data entry fields, such as:

Limits Deductibles

Valid system tables and their entries, 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

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Delivery Model
= Content from ISO State Manual

ISO LOB State

ISO LOB Countrywide

= Content from ISO Multi-State Manual

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What Is ISO Rating Service?

ISO Rating Service:
Powerful rating engine Tool set ISO-defined rating content Ongoing maintenance

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ISO Rating Service

A unified rating solution for ISO programs Incorporates ISO-interpreted advisory loss costs, rules, 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
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Rating Documentation Artifacts

Some of the tools provided with ISO Electronic Rating Content and ISO Rating Service:
Ratebook Reports containing ISO-defined valid values, loss costs, and forms assignment rules Algorithm files containing ISO-defined order of calculations, rounding rules, statistical code assignment, forms attachment, logic and edits for forms and coverages

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Rates and Valid Values Electronically

Need to know the ISO loss costs for a specific ratebook release?
Create a custom file with your companys exceptions for development Create a file for use with your companys modeling tools Create a file for your actuaries to use as an analysis tool

Loss costs as defined by ISO from CLM

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Key Rating Data in Electronic Format

Need a list of ISO territories by city for use in:
Building your companys user interface Creating a custom file with your companys 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

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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
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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, conditional, or mandatory

Forms attachment logic for each conditional endorsement

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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

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Feedback
Send feedback to:
mondaywebseminars@verisk.com

Next event:
Monday, March 12, 2:00 p.m. Eastern time Commercial Telematics: What Are You Missing?

Visit www.verisk.com/ws to register

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