Verisk Announces New Florida Sinkhole Location Product

Verisk Insurance Solutions – Underwriting, a unit of Verisk, announced LOCATION Sinkhole Service, which is based on more than 86,000 records with settlement indicators, including more than 55,000 confirmed sinkholes.

Sinkhole Service helps insurers minimize risk from subsidence and other sinkhole-type perils in Florida. The underlying data is based on an exclusive collection of sinkhole claims information compiled during the past 20 years.

“Sinkholes are one of the costliest perils for Florida insurers,” said Neil Spector, president of Verisk Underwriting. “Recent legislation has given insurers some tools to manage this required coverage. However, other than costly inspections, insurers don’t have a reliable way to accurately determine the true risk of sinkholes. Sinkhole Service was developed to help Florida insurers quickly and easily assess sinkhole risk for any property in Florida.”

The product provides two sinkhole hazard indicators applicable to both residential and commercial properties. First, a sinkhole score, which is based upon the proximity of a property to confirmed sinkholes. Second, an area analysis based on the number and type of sinkhole indicators within one mile of the property.

Insurers can use the results to:

• implement new-business and renewal underwriting rules;

• determine appropriate premiums and contract language for sinkhole insurance policies;

• identify properties with previous sinkhole claims;

• predict future claim exposure based on area trend analysis;

• assist in developing a rating system to identify zones of high risk exposure.

Sinkhole Service, updated monthly, is based on data collected during the investigation of actual sinkhole claims. Engineering, geotechnical, and geologic experts and other resources confirm all data to ensure accuracy.

For more information on Sinkhole Service, please visit www.iso.com/sinkhole.

Source: Verisk Insurance Solutions – Underwriting