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Don't Use ISO to be Like the Rest. Use it to be Better.

Don't Use ISO to be Like the Rest. Use it to be Better.

投稿者: James McCully 日付:

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A smarter enterprise has become the goal for many insurers as we move into an age where applying the vast amounts of data becoming available is seen as the path to success. Getting smarter is an ever-evolving goal… a journey, not a destination. To that end, being able to get a head start and better leverage the opportunities to apply your resources can be quite valuable.

One example of this, in the U.S. market, Verisk (née ISO) continually sets the standards for loss costs, form language, coverage terms, etc. These standards form the basis of most programs for a good reason – they offer a well-backed, well-understood foundation for a complex and ever-evolving market. In fact, I would go so far as to say that there is no business reason for not staying current on the ISO programs. However, it can be costly to stay at the same level as the market standard, though I would argue that it is even costlier to fall behind it. Adverse selection is a painful and challenging situation that takes cycles to recover from.

Consciously understanding where you are choosing to deviate and knowing where you stand in relation to it is important. Differentiating from ISO can be an effective way to compete, BUT it is important to be able to quantify the value of being different – it comes with a cost, whether that is in filing, defending, explaining, justifying, etc., there are costs. If you can quantify why the differences create value, then it makes sense. If not, it simply doesn’t. Also, keep in mind that the changing market may make valuable ideas obsolete, commonplace, or adverse.

So, insurers need a way to leverage ISO standards as a foundation. If this is done efficiently, with tools that can provide them with the insight needed to understand their position and control their adoption, an insurer’s resources can focus on finding and applying advantages that build from the standard. In effect, using it as a boost to further your goal to become a smarter enterprise.

Don’t do it to be like the rest. Do it so you can be better.

James will be participating in a Connections 2018 panel discussion with Zurich North America to discuss ISO and Guidewire's Product Content Management program, "U.S. Commercial Lines: Keep Calm and Stay Current," taking place Monday, October 15th at 3:45 p.m. in Mouton #2. He will also be participating in the workshop, "Product Content Management, U.S. Commercial Lines, SBTs, & Product Content Analyzer," taking place Wednesday, October 16th at 10:00 a.m. in Mouton #2.

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