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Old 04-22-2019, 05:11 PM
yoyo's Avatar
yoyo yoyo is offline
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Default Who has to report class experience to ISO?

For commercial lines excluding Auto, like GL.

All things WC are pretty heavily regulated and I'm familiar with the reporting (policy, unit, financial calls, etc). My employers have all adopted WC bureau loss costs and applied an LCM to get manual rates. We then do all the required reporting and the data eventually makes its way around to a new set of loss costs.

How does it work for GL experience reporting? Do essentially all GL carriers have to report to ISO? Or do carriers with independent rates not have to report? How does that work?

Yeah, I should know this but I don't.

I guess my basic question is, is GL class experience reporting as heavily regulated and required as is WC class experience reporting? How "good" are ISO loss costs by class code for any given state? Are they "as good" as WC loss costs by class code for a state? (Where is "good" is a measure of expected loss for the average risk for that class code in that state.)
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Old 04-22-2019, 05:44 PM
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And what's the deal with ELPs? They're weird as a Shriner's hat.
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Old 04-22-2019, 06:02 PM
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As I understand it, GL "class experience" is not as heavily regulated as WC. Primarily because in WC is generally a strict liability coverage where GL is not.

I believe that only those who subscribe to ISO rating (as a starting point) are required to "report" their experience. I think other companies can volunteer their experience to ISO, but not required.
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Old 04-22-2019, 07:02 PM
itGetsBetter itGetsBetter is offline
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Agreed. With ISO, you give data in order to get data.
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Old 04-23-2019, 08:38 AM
oirg oirg is offline
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ISO is one of the designated statistical agents that reports data on behalf of participating companies to state insurance department according to their respective reporting requirements.

So, there is no requirement to report data for any line of business - you can report to another statistical agents or directly to state insurance departments.

ISO loss costs for non-(a)rated classes are pretty good. ELPs are countrywide loss cost estimates for some (a)rated classes.
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Old 04-24-2019, 08:52 AM
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thanks for the info
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