Verisk Analytics, Inc. (Verisk) is a data, analytics, and technology provider serving clients in the insurance ecosystem.
Using advanced technologies to collect and analyze billions of records, the company draws on unique data assets, insurance industry knowledge, and technological expertise to provide valuable solutions that are integrated into client workflows. The company offers predictive analytics and decision support solutions to clients in rating, underwriting, claims, catastrophe, weath...
Verisk Analytics, Inc. (Verisk) is a data, analytics, and technology provider serving clients in the insurance ecosystem.
Using advanced technologies to collect and analyze billions of records, the company draws on unique data assets, insurance industry knowledge, and technological expertise to provide valuable solutions that are integrated into client workflows. The company offers predictive analytics and decision support solutions to clients in rating, underwriting, claims, catastrophe, weather risk, and many other fields. In the United States (‘U.S.’) and around the world, it helps clients protect individuals, communities, and businesses.
The company completed the sale of its Energy business on February 1, 2023. The company also divested its specialized markets and financial services businesses in March 2022 and April 2022, respectively.
The company’s clients use its solutions to make better decisions about risk and improve operating efficiency. The company refers to these products and services as solutions due to the integration among its services and the flexibility that enables the company’s clients to purchase components or a comprehensive package. These solutions take various forms, including proprietary data assets, expert industry insight, statistical models, tailored analytic objects, and robust software platforms all designed to allow the company’s clients to make more informed risk decisions. In 2024, the company’s clients included all of the top 100 property and casualty (P&C) insurance providers in the U.S. for the lines of P&C services it offers.
Business Strategy
The company’s business strategy is driven by the following priorities:
Drive Consistent & Predictable Growth: With the company’s clear focus on insurance, integrated organization and its client-centric and results-oriented culture, the company strives to deliver consistent and predictable growth. The company is leveraging its strong client relationships to extend its reach within insurance and elevate the strategic dialogue with the company’s clients. The company is modernizing and advancing the capabilities of its core solutions using cloud technology and advanced analytical methods, including machine learning and artificial intelligence (‘AI’) while also augmenting the company’s solutions through the addition of new data assets and sources. In addition, the company is working on building leadership positions in adjacent markets, including life insurance, marketing, specialty business solutions, and resilience and sustainability. With the client at the center of all the company does, it is driving innovation across the company’s portfolio and partnering with its clients to help solve the insurance industry's greatest challenges with a focus on rapidly changing technology, growing regulatory focus, and value creation.
Insurance Segment
The company operates in one segment, Insurance, which primarily serves its P&C insurance customers across most personal and commercial lines of business, focusing on the fundamental building blocks of insurance programs, the prediction of loss, the selection and pricing of risk, and compliance with their reporting requirements in each U.S. state in which they operate. The company also develops and utilizes machine-learned and artificially intelligent models to forecast scenarios and produce both standard and customized analytics that help its customers better manage their businesses, including detecting fraud before and after a loss event and quantifying losses. customers, acquired over more than 50 years, include most of the P&C insurance providers in the U.S. In recent years, the company expanded its offerings to serve certain non-U.S. markets and into the fields of life insurance and annuities, as well as insurance marketing. The company offers its solutions and services primarily through annual subscriptions or long-term agreements, which are typically prepaid (annually and quarterly) and represented approximately 81% of the company’s revenues in 2024. The company is well positioned to increase its penetration of the global insurance industry because of the company’s proprietary data assets, long-standing industry relationships, deep insurance industry expertise, and its scale to drive broad distribution of the company’s new innovations.
Underwriting
Powered by proprietary and contributory data and advanced analytics and technologies, the company offers a full suite of solutions to support its P&C clients across the insurance policy lifecycle. This support spans their product development, marketing, new and renewal underwriting, risk selection and segmentation, pricing, and straight through to policy binding and issuance. The company continued to grow its presence internationally and expand the company’s capabilities into new markets, such as life insurance and annuities, and into new workflows, such as marketing and customer acquisition.
Forms, Rules, and Loss Costs
The company is the recognized leader in the U.S. for industry-standard insurance programs that help P&C insurers define coverages and issue policies. The company provides policy language, prospective loss costs, policy writing and rating rules, and a variety of underwriting solutions for risk selection and segmentation, pricing, and workflow optimization across 31 lines of insurance. The company’s policy language, prospective loss cost information, and policy writing rules can serve as integrated, turnkey insurance programs for its clients.
To meet the company’s clients’ needs, it processes approximately 2,000 regulatory filings and interface with state regulators in all 50 states plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands each year to ensure smooth implementation of the company’s rules and forms. When insurers choose to develop their own alternative programs, its industry-standard insurance programs also help regulators ensure that such insurers’ policies meet basic coverage requirements.
As a result, the company’s industry-standard language also simplifies claim settlements and can reduce the occurrence of costly litigation because its language causes the meaning of coverage terminology to become established and known. The company’s policy language includes standard coverage language, endorsements, and policy writing support language that assist its clients in understanding the risks they assume and the coverages they offer. With these policy programs, insurers also benefit from economies of scale. The company has more than 240 insurance experts and specialized lawyers reviewing changes in each state’s insurance rules and regulations, including an average of approximately 12,300 legislative actions, 16,000 regulatory actions, and 2,000 court decisions per year, to make any required changes to its policy language and rating information.
To cover the wide variety of risks in the marketplace, the company offers a broad range of policy programs. For example, in the homeowner’s line of insurance, it maintains policy language and rules for approximately 6 basic coverages, 385 national endorsements, and 701 state-specific endorsements.
The company aggregates the data, and as a licensed or appointed ‘statistical agent’ in all 50 states, Puerto Rico, and the District of Columbia, it reports those statistics to insurance regulators. The company is able to capture significant economies of scale given the level of penetration of this service within the U.S. P&C insurance industry.
To provide the company’s clients and the regulators with the information they require, it maintains one of the largest private databases in the world. Over the past five decades, the company developed core expertise in acquiring, processing, managing, protecting, and operating large and comprehensive databases that are the foundation of its insurance offerings. The company uses its proprietary technology to assemble, organize, and update vast amounts of detailed information submitted by the company’s clients.
The company maintains an underwriting database of more than 36.3 billion statistical records, including approximately 9.7 billion commercial lines records and approximately 26 billion personal lines records. The company collects unit transaction detail of each premium and loss record, which enhances the validity, reliability, and accuracy of its data sets and the company’s actuarial analyses. Across all the company’s insurance lines, its proprietary quality process includes approximately 3,000 separate checks to ensure that the data meets the company’s high standards.
Using the company’s large database of premium and loss data, it provides actuarial services to help the company clients analyze and price their risks. The company’s actuaries are able to perform sophisticated analyses using its predictive models and analytic methods to help the company’s P&C insurance clients with pricing, loss reserving, and market analysis. The company distributes a number of actuarial solutions and offer flexible services to meet its clients’ needs. In addition, the company’s actuarial consultants provide customized services for its clients that include assisting them with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and a wide variety of other business decisions. The company also supply information to various clients in other markets, including reinsurance and government agencies.
The company’s project clients' future losses and loss expenses using a broad set of data. Those projections tend to be more reliable than if its clients used their own data exclusively. The company makes a number of actuarial adjustments before the data is used to estimate future costs. The company’s clients can use its estimates of future costs in making independent decisions about the prices charged for their policies.
Underwriting Data and Analytics Solutions
The company’s gather information on individual properties, vehicles and communities providing the breadth and depth of data and analytics needed to support its clients as they evaluate, segment, and price personal and commercial insurance, as well as commercial liability insurance, throughout the policy lifecycle. The company’s property- and auto- specific rating and underwriting information allows its clients to understand, quantify, underwrite, mitigate, and avoid potential loss for these risks.
The company’s database contains data and analytics on approximately 143 million residential properties and 16 million commercial properties in the U.S. The company has e a staff of approximately 500 field representatives strategically located around the U.S. who observe and report on conditions at commercial and residential properties, evaluate community fire-protection capabilities, and assess the effectiveness of municipal building-code enforcement. Each year, the company’s field staff visits approximately 300,000 commercial properties to collect information on new buildings, verify building attributes, and provide specific loss costs. The company’s auto solutions are powered by a mix of third-party and proprietary data ranging from 2 billion traffic court records to characteristics on more than 275 million insured drivers and 280 million registered vehicles with access to expansive industry databases on loss costs and claims.
The company is a leading provider of innovative solutions for the personal underwriting markets, including homeowners and auto lines. Drawing on an array of resources from proprietary and third-party data to geospatial imagery, the company builds and maintains widely used industry-standard tools that assist insurers in underwriting and rating—that is, measuring and selecting risks and pricing coverage appropriately to help ensure fairness to the consumer and a reasonable return for the insurer. The company’s solutions apply advanced predictive analytics to its deep reservoir of data and information to gauge the degree and cost of risk quickly and precisely, and the company’s workflow tools help insurers increase speed and cost-efficiency while enhancing customer experiences. These solutions span a range of applications—from using precise home reconstruction costs to help policyholders have the right amount of coverage, to providing auto insurers with the data that supports offering consumers a bindable quote in minutes through modern API’s.
The company also provides proprietary analytic measures of the ability of individual communities to mitigate losses from important perils. Nearly every property insurer in the U.S. uses its evaluations of community firefighting capabilities to help determine premiums for fire insurance throughout the country. The company provides field-verified and validated data on fire protection services for approximately 36,000 fire response jurisdictions. The company also offers services to evaluate the effectiveness of community enforcement of building codes and the efforts of communities to mitigate damage from flooding.
Further, the company provides information on the insurance rating territories, premium taxes, crime risk, and hazards of windstorm, earthquake, wildfire, and other perils. To supplement the company’s data on specific commercial properties and individual communities, it has assembled, from a variety of internal and third-party sources, information on hazards related to geographic locations representing every postal address in the U.S. Insurers use this information not only for policy quoting but also for analyzing risk concentration in geographical areas. The company also makes its data and analytics available to commercial real estate lenders to allow them to better understand risks associated with people to whom they lend.
Extreme Event Solutions
The company is a leader in and pioneered the field of probabilistic catastrophe modeling used by insurers, reinsurers, intermediaries, financial institutions, and governments to manage their risk from extreme events. The company’s models, which form the basis of its solutions, enable companies to identify, quantify, and plan for the financial consequences of catastrophes. The company’s developed models for hurricanes, earthquakes, winter storms, tornadoes, hailstorms, wildfires, and floods in more than 120 countries and territories. The company has developed a probabilistic terrorism model capable of quantifying the risk in the U.S. from this evolving threat, which supports pricing and underwriting decisions down to the level of an individual policy, as well as models for estimating losses to crop insurance programs in the U.S., Canada, India, and China. The company’s newest models offer risk quantification solutions for the casualty line of business.
The company offers global risk intelligence providing insight into sustainability and resilience issues, underpinned by geospatial data and analytics. The company provides intelligence on sustainability, resilience, human rights, environmental, sovereign and political risk, stitching together these disparate issues into an interconnected global view built upon objective insight and data.
Life Insurance Solutions
In recent years the company has expanded its offerings to also serve the life insurance and annuities markets through the company’s 2019 acquisition of FAST. The company has developed a suite of solutions that apply advanced analytics, automation, and machine learning to existing and emerging data sources. The company’s solutions are designed to help transform workflows in life insurance underwriting, claim insights, policy administration, unclaimed property/equity, compliance and fraud detection, and actuarial and portfolio modeling. The company’s industry-leading FAST platform can reduce time to market, enables faster policy conversion, and can reduce information technology costs for its customers, uniquely positioning the company to help support the modernization of the life insurance industry.
Specialty Business Solutions
The company is a leading software supplier to the global specialty insurance market with particular focus on the London specialty market where it has a long-standing client base. The company’s powerful software suite, coupled with its vast datasets, experience, and technology allows the company’s clients to grow and better manage their business with greater efficiency, flexibility, and data governance. The company’s solutions serve insurers, (re)insurers, brokers, cover holders, and managing general agents (MGAs) in London and across the globe.
The company helps drive the success of many of the fastest growing insurance and reinsurance specialists by providing full end-to-end management of insurance and reinsurance business. The company’s suite of software solutions covers a broad range of insurance processes from policy negotiation and placement, pricing and policy administration through to claims and outwards reinsurance.
Many of the company’s solutions can be integrated with one another and with capabilities across the organization to meet evolving client needs and offer a compelling digital ecosystem for the London and global insurance market. To that end, the company’s global marketplace solution offers seamless real-time quote-to-bind electronic placing and distribution for the specialty insurance market.
Marketing Solutions
Through recent acquisitions, the company extended its data and workflow capabilities to help the global insurance industry drive improvement in customer acquisition, growth, and retention. Marketing and advertising spend for insurers goes well beyond $10 billion and has continued to increase year over year. The company possesses unique and proven data sets that help the insurance industry more precisely segment, target, and optimize advertising and marketing spend. Solutions include compliant, real-time decisioning, profitability, and risk assessment (pre-quote and pre-underwriting) for inbound consumer interactions. The company also powers ongoing enrichment of prospective and customer insights for the highest probability of retention and increased share of wallet (policy bundling), as well as full coverage of the U.S. households and consumers to drive prospect marketing and advertising strategies. Verisk Marketing Solutions brings a unique insurance-focused, specialized offering that covers insurance carriers’ holistic marketing data needs.
International Underwriting Solutions
The company continues to expand its footprint of data and solutions to include international markets. The company’s international insurance markets grew through acquisitions and today serve a large number of insurers operating in the Canadian, United Kingdom (U.K.) and Irish property and casualty markets, and travel market. Additionally, the company’s international market provides services to much of the Lloyd's of London market, while also serving clients in Continental Europe, Singapore, China, Australia, and New Zealand. The international enhanced commercial and residential property models and enriched data sets help insurers with triage, reconstruction value, risk selection, pricing, benchmarking, and portfolio management across multiple insured segments. Insurers also use the company’s solutions to help fine-tune the accuracy of their rating models and to enhance underwriting results through a set of analytical solutions that predict the relative risk and variation of major insurance perils, including theft, flood, storm, fire, freeze, etc. The company’s suite of international solutions also includes rating tools that automate the assessment of pre-existing conditions, helping travel and health insurers to get a broad view of a customer's medical risk and make underwriting decisions with speed and precision.
Claims
The company claims insurance solutions provides its customers analytics in fraud detection, compliance reporting, subrogation liability assessment, litigation, and repair cost estimation and valuation, including emerging areas of interest within these categories.
Property Estimating Solutions
The company also provides data, analytics, and networking solutions for professionals involved in estimating all phases of building repair and reconstruction. The company provides solutions for every phase of a building’s life, including quantifying the ultimate cost of repair or reconstruction of damaged or destroyed buildings for personal and commercial properties; aiding in the settlement of insurance claims; and tracking the process of repair or reconstruction and facilitating communication among insurers, adjusters, contractors, and policyholders.
To help the company’s customers estimate repair costs, it provides a solution that assists contractors and insurance adjusters in estimating repairs using a patented plan-sketching program that automatically calculates material and labor quantities for all desired construction or repairs to a structure based on user inputs.
The company also provides its customers access to price lists, which include structural repair and restoration pricing for 468 separate economic areas in North America based on direct market surveys and analysis of actual customer claim experience. The company revises this information monthly, and as often as weekly in the aftermath of major disasters, to reflect rapid price changes. The company’s structural repair and cleaning database contains approximately 21,000 unit-cost line items. The company estimates that more than 80% of insurance repair contractors and service providers in the U.S. and Canada with computerized estimating systems use its building and repair pricing data. This large percentage leads to accurate reporting of pricing information, which the company believes is unmatched in the industry.
The company’s virtual claims-adjusting tools help improve policyholder satisfaction, reduce human error, and save on loss adjustment expense. These tools simplify collaboration among claims professionals, contractors, and policyholders as they work together remotely and efficiently. These cloud-based and on-premise solutions include real-time video collaboration, remote measuring tools, generative AI-powered damage assessment, and image analytics fraud warnings, among other features.
Customers access the company’s ecosystem for enhanced claims handling and analysis. For example, they can use its weather API for near-real-time updates and valuable insights for responding to weather perils that can impact their policyholders and their business. They can also use the company’s data insights to analyze and benchmark their performance against peers in the industry and to manage claims assignments.
Anti-Fraud Solutions
The company is a leading provider of fraud-detection tools for the P&C insurance industry. The company’s anti-fraud solutions can improve its customers’ profitability by predicting the likelihood that fraud may be occurring and by detecting suspicious activity after it has occurred.
The company’s claims database lends significant support to the fight against insurance fraud. The company’s database also helps insurers fulfill their regulatory compliance reporting requirements at both the state and federal levels for delinquent child-support liens and other required checks.
When a claim is submitted, the company’s system searches its claims database and returns information about other claims filed by the same individuals or businesses (either as claimants or insureds) that helps the company’s customers determine if fraud may be occurring. The system searches for matches in identifying information fields, such as name, address, Social Security number, vehicle identification number, driver’s license number, tax identification number, or other parties to the loss. The company’s system also includes advanced name and address searching to perform intelligent searches and improve the overall quality of the matches.
The company also has a suite of advanced fraud analytics solutions: a solution that uses predictive models to accurately score claims based on fraud indicators; an injury claims solution that uses predictive analytics to detect medical provider fraud, waste, and abuse; and a network analytics solution that helps detect patterns indicative of organized fraud.
The company continually pursues new solutions that help its customers keep abreast of changing markets and technology. For example, the company developed a digital media database that allows customers to view prior-loss images on claim matches so they can detect pre-existing damage on new claims. The company’s advanced digital media forensics can detect suspicious claim-related photos, and its customers can flag stolen and synthetic identities in the database to help subscribers deter that type of fraud. The company also provides accurate person and vehicle coverage details at first notice of loss (FNOL), including verified registered owner information through DMV data, contact information for the individual, and brief claims history.
Casualty Solutions
The company offers a full suite of casualty/bodily injury solutions to serve the P&C industry, third-party administrators, and self-insured employers. Verisk casualty solutions focus on compliance (Medicare Secondary Payer and workers’ compensation state reporting); casualty claims decision support (severity detection and damage assessment); and workflow automation (automated medical record review and claims processing). The company’s compliance division offers Medicare Secondary Payer solutions and services to comply with the federal statute, including Section 111 Centers for Medicare & Medicaid Services (CMS) reporting, lien resolution/conditional payments, liabilities repayment, and ongoing protection of the Medicare Trust Fund via Medicare Set Aside (MSA) services. As the largest provider of Medicare compliance services in the industry, the company plays a critical role in assisting and protecting all stakeholders, including Medicare and its beneficiaries.
The company’s comprehensive workers’ compensation state reporting helps customers meet the very complex compliance requirements for reporting to states and other government related agencies and entities through an automated process driving efficiency and productivity for the U.S. P&C insurance industry.
The company’s casualty claims decision support and workflow automation offerings augment human capital in a claims organization to make accurate decisions while eliminating manual steps in the process. The company has solutions that leverage AI and generative AI to automatically extract unstructured data from and summarize medical records for efficient review and analysis during claim processing and demand packages review to improve injury evaluations and settlement negotiations. The company also offers tools that use predictive analytics to provide workers’ compensation severity scoring from first notice of loss through claim closure to help its customers accurately settle claims.
International Claims Solutions
The company continues to expand its claim product offerings to international markets through internal innovations and acquisitions in both the United Kingdom and Continental Europe. The company’s solutions are centered around personal injury and motor franchises covering Germany, the Nordics, and the United Kingdom with complementary offerings to the property claims sector in the United Kingdom.
Customers
The customers for the lines of P&C services the company offers include the top 100 P&C insurance providers in the U.S., 18 of the top 25 global reinsurance companies, as well as domestic InsurTech companies and insurers in international markets. The company claims database serves thousands of customers, representing approximately 90% of the P&C insurance industry by premium volume, approximately 500 self-insurers, approximately 450 third party administrators, several state fraud bureaus, and many law enforcement agencies involved in the investigation and prosecution of insurance fraud.
Development of New Solutions
The company takes a market-focused team approach to developing its solutions. The company’s data management and production team design and manages its processes and systems for market data procurement, proprietary data production, and quality control. The company’s teams support its efforts to create new information and solutions from available data and explore new methods of collecting data. The company is focused on understanding and documenting business unit and corporate data assets and data issues, sharing and combining data assets across the enterprise, creating an enterprise data strategy, facilitating research and product development, and promoting cross-enterprise communication.
The company’s software development teams build the technology used in many of its solutions. As part of the company’s product development process, it continually solicits feedback from the company’s customers on the value of its solutions and services and the market’s needs. The company has established an extensive system of customer advisory panels that meet regularly throughout the year to helps it respond effectively to the needs of the company’s markets. In addition, the company uses frequent sales calls, executive visits, user group meetings, and other industry forums to gather information to align the company’s product development efforts with the needs of the market. The company also uses a variety of market research techniques to enhance its understanding of the company’s customers and the markets in which they operate.
Intellectual Property
The company owns in excess of 600 trademarks in the U.S. and foreign countries, including the names of its solutions and services and the company’s logos and tag lines, many of which are registered.
The company also owns several patents and has several pending patent applications in the U.S. that complement its solutions.
Dispositions
In December 2024, the company sold Atmospheric and Environmental Research (‘AER’).
Regulations
Because the company’s business involves the distribution of certain personal, public, and nonpublic data to businesses and governmental entities that make eligibility, service, and marketing decisions based on such data, certain of its solutions and services are subject to regulation under federal, state, and local laws in the U.S., and to a lesser extent, in foreign countries. Examples of such regulation include the Fair Credit Reporting Act, which regulates the use of consumer credit report information; the Gramm-Leach-Bliley Act, which regulates the use of nonpublic personal financial information held by financial institutions and applies indirectly to companies that provide services to financial institutions; the Drivers Privacy Protection Act, which prohibits the public disclosure, use, or resale by any state’s department of motor vehicles of personal information about an individual that was obtained by the department in connection with a motor vehicle record, except for a ‘permissible purpose’; and various other federal, state, and local laws and regulations.
Many of the company’s solutions, services, and operations, as well as insurers' use of its services are subject to state rather than federal regulation by virtue of the McCarran-Ferguson Act.
Research and Development Costs
The company’s research and development costs were $35.3 million for the year ended December 31, 2024.
History
Verisk Analytics, Inc. was founded in 1971. The company was incorporated in 2008.
