ISO Files Revisions to Fire Suppression Rating Schedule and Public Protection Classification Structure
2013-01-14 16:02:22 -
JERSEY CITY, N.J., January 14, 2013 - ISO announced today that it has filed
revisions both to modernize and enhance its Fire Suppression Rating Schedule
(FSRS) and to restructure property rating rules to recognize a revised Public
Protection Classification (PPC) structure. ISO is a member of the Verisk
Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK).
"ISO undertook a comprehensive effort to review the content of the FSRS with the
goal to identify those portions of the current grading evaluation that warranted
necessary revision," according to Robert Andrews, vice president of Community
Hazard Mitigation, who is responsible for countrywide implementation of ISO's
PPC program. "ISO initiated dialogue with national water, fire, and emergency
communication associations and dozens of municipal fire authorities to develop a
significant body of feedback relating to modernization of the FSRS."
"To enhance the predictive value of our PPC program, ISO conducted extensive
actuarial and statistical modeling analyses," Andrews emphasized. "We evaluated
each section of the FSRS to determine its correlation with fire losses. The
result is an increasingly predictive and modern schedule that incorporates
standards developed by professional organizations such as the National Fire
Protection Association, American Water Works Association, and Association of
Public-Safety Communications Officials International."
ISO collects information on municipal fire protection efforts for more than
47,000 fire response jurisdictions throughout the United States. Using the Fire
Suppression Rating Schedule, ISO assigns a Public Protection Classification from
1 to 10, with Class 1 generally representing superior property fire protection
and Class 10 indicating that the area's fire suppression program doesn't meet
minimum criteria. When applied by ISO's staff of professional field surveyors,
the revised FSRS provides crucial information for understanding the entire
landscape of risk associated with a specific property.
"The PPC has long been recognized as a pillar of property insurance where
reliable, up-to-date information about a community's fire protection services
has been proven to correlate directly to underlying risk," said Kevin Thompson,
president of ISO Insurance Programs and Analytic Services.
"During development of the new edition of the FSRS, we examined commercial
property and homeowners loss experience," added Thompson. "Based on the results
of that analysis, we plan to introduce new categories within the PPC structure
to recognize favorable loss experience for certain communities, relative to
split classifications, that reflect the reduced loss potential when compared to
A split classification is one in which properties within a given community may
vary in class based on their distance from a responding fire station or distance
from a recognized water source (for example, hydrant).
ISO will begin applying the new schedule this summer, with the revised PPC
structure taking effect in 2014.
Since 1971, ISO 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. ISO is a member of the Verisk
Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK). For more
information, visit www.iso.com and www.verisk.com.
Jessica Riccardi/Giuseppe Barone
MWW Group (for ISO)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Verisk Analytics Inc. via Thomson Reuters ONE