The Advantages of Digital Insurance Rating in an Era of Rapid Change

Mark SheehanThere’s no question that autonomous vehicle technology could make cars safer and significantly reduce the frequency of auto claims.

But with that new technology also come new risks. The new technology will likely make it more expensive to repair or replace cars. That cost, along with the potential for cyber attacks on autonomous systems, could significantly increase the severity of auto claims.

So, how might autonomous cars affect auto insurance?

There’s no easy answer. Like other emerging issues, the risks of autonomous vehicles will probably change rapidly, creating new challenges and opportunities for many insurers. Those insurers that can adapt and deliver solutions to market quickly will likely be the best equipped to succeed.

We’re already seeing the competition for better service in other industries. Consumers are using apps to stream movies, hail rides, and get food delivered—faster than ever before. They’re tired of waiting, and they’re demanding digital solutions that are simple and intelligent, connected and open, fast and scalable.

At Verisk, we’ve made it a priority to meet our customers’ growing demand for rapid and customizable solutions. The ISO Electronic Rating Content (ERC) Suite allows insurers to automate updates to their loss costs, rules, and forms—and spend more time meeting the critical needs of customers. According to a 2014 report by the Novarica Research Partners Program, companies using ISO ERC can reduce the average time spent manually processing an ISO update by 39 percent, from more than 560 to 340 hours.

And we’re continually enhancing ISO ERC. We created an automated maintenance feed (AMF) that streamlines and automates the full maintenance cycle. We’re also creating a custom impact analysis dashboard to help quantify the effect of ISO changes on an insurer’s unique book of business. Those enhancements have a common theme: they allow insurers to keep up with ISO changes more easily so they can spend more time focusing on running their business. If you’d like to learn more about what we have in store for ISO ERC, please contact me at Mark.Sheehan [at] verisk.com.

We work closely with Guidewire, a long-standing vendor partner, to provide unique options for customers to leverage ISO content. With ISO ERC and Guidewire product update tools, insurers gain the ability to adopt new revisions quickly and keep up to date in the market.* Customers have the option to manage the updates themselves, or they can choose to outsource the process to a Guidewire partner.

* Standards-based templates with ISO content are available to ISO participating insurers licensed by ISO for specific lines of insurance, states, and jurisdictions. Access to ISO ERC updates is restricted to insurers that have also licensed (or will simultaneously license) ISO Electronic Rating Content from ISO.