Jersey City, NJ, USA – ISO has filed its first vehicle telematics-based rating rule in 33 states and received approvals in 19. The optional GeoMetric® rating rule for personal and commercial automobiles uses information collected via telematics to award discounts for vehicles operated in areas safer than where they are garaged.
Using patent-pending systems and methods developed by ISO, a member of the Verisk Insurance Solutions Group, the rule assesses the risk of an insured vehicle based on actual driving locations while respecting the privacy of the insured.
The GeoMetric rating rule uses a set of advanced predictive modeling tools called ISO Risk Analyzer®. The environmental module of ISO Risk Analyzer considers hundreds of variables related to where people live, work, and drive to measure the risks posed at each geographic location. The GeoMetric product builds on those insights by applying the geographic risk measurements to each vehicle’s driving locations. The end result is a simple report showing the number of miles and time traveled by the insured within each risk tier, or band. Vehicles that are garaged in higher bands but frequently travel into lower bands may be eligible for discounts of up to 25% under the programme.
“The new telematics-based rating rules we filed are a significant step in the evolution of usage-based insurance,” said Kevin Thompson, president of ISO Insurance Programs and Analytic Services. “By assessing the risk of actual driving locations while protecting policyholder privacy, GeoMetric reports make it easier for insurers to use the GPS information collected via telematics to identify and award discounts to safer risks.”
The GeoMetric rating rule is the first telematics-based program that ISO has filed with insurance regulators in various states. The personal and commercial auto rating rules are designed to integrate easily with insurers’ own rating structures. Insurers that contribute telematics data, along with corresponding premium and loss information, to ISO’s Driving Behavior Database for Modelers will receive GeoMetric reports as well as access and input to the rest of ISO’s suite of telematics-based solutions.
ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK). Since 1971, it has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, the company provides statistical, actuarial, underwriting, and claims information; policy language; information about specific locations; fraud identification tools; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace
