ISO stands for the Insurance Services Office. ISO is a leading provider of insurance tools and analytics to the property and casualty insurance industry. But there’s another ISO that you might have heard of—the International Organization for Standardization. While they are different entities, both ISOs play crucial roles in their respective fields. Learn more about the International Organization for Standardization and their work here.

ISO In the Insurance World

In the realm of insurance, Insurance Services Office, Inc. (ISO) is a global provider offering analytical services to help the insurance industry to accurately determine risk in order to price policies. They support reinsurers, third-party administrators, agents, brokers, regulators, and risk managers.

 

A brief history of ISO

Founded in 1971, ISO began as a property and casualty insurance marketplace resulting from the merger of several companies’ databases. This consolidation allowed ISO to provide analytics services such as underwriting analytics, actuarial information, and policy language. Over the years, ISO continues to expand its services.

 

How ISO works

ISO analysts use a robust database to develop language and evaluations that assist insurers in writing policies. Although you might see the ISO copyright on your policy, ISO itself is not an insurance company. Instead, it provides services that many areas in the insurance industry rely on. Key services include:

  • Statistical Information
    Leveraging an extensive database, ISO offers comprehensive statistics on risk and insurance.
  • Actuarial Information
    This data helps mathematically determine, prepare for, and respond to financial risks.
  • Underwriting Information
    This insight is used to evaluate and manage the risk involved with lending or investing.
  • Claims Information
    Claims information specific to your history or industry, which is considered when insurers underwrite policies.
  • Insurance Policy Language
    Many policies use language developed by ISO. This language is often identifiable by an ISO copyright.
  • Information About Specific Locations
    For real estate insurance, ISO provides detailed location analysis to help insurers determine policy terms.
  • Fraud Identification Tools
    These are tools that help the financial institutions industry mitigate fraud risk.

What is an ISO report?

An ISO report incorporates data from the ISO database, including property and casualty claims linked to your identity. The insurance industry utilizes these reports to gain insights into your history when evaluating claims and other matters.

What is a standard ISO policy?

A standard ISO policy, also known as an ISO standard, is drafted by ISO and used by insurers to save time on policy form creation. In many fields, these policies set the industry standard. The commercial general liability insurance policy that Thimble currently offers, for instance, is based on the ISO CG 00 01 04 13 coverage form, a form for which ISO developed the policy language.

What is the ISO copyright on my insurance policy?

When you see the ISO copywrite on a policy, it signifies thoroughly reviewed and assessed policy language.

Are you a Thimble policy holder? If so, you’ll see a copyright statement on many of the forms in your policy!

ISO in Insurance: The Takeaway

At its core, the Insurance Services Office, or ISO, owns a vast database that uses data to offer insights and best practices for risk management businesses. Working with a company like Thimble that leverages this entity’s insights and standards is imperative. From building accurate quotes to maintaining official policy coverage forms and certificates you can trust, ISO is a fundamental pilar in the insurance world.

For more about international standards that ensure safety, reliability, and quality across various sectors, visit the International Organization for Standardization. Their work enables businesses to adopt sustainable and ethical practices, combining quality with conscience to enhance your daily experiences.

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