Got this from the State fire Marshal's office.
"State Farm will no longer use the ISO as a rating factor.This is signifacant as State Farm nationally insures about 20% of all residential properties and is the largest insurance company.
State Farm's new process is called Subzone Rating Factor and will rely on their own experience for insured losses. They will use Zip Code areas with similar claim and expense cost trends as a means of generaly defining the specific Sudzone Rating factor."
They go on to claim how much better and cheaper this will be.
This has allready happened in Illinois and Michigan.Supposed to happen across the county in the next two years.
If they insure 20% of the property,I assume they pay 20% of ISO's budget.Does this mean the end for ISO?
"State Farm will no longer use the ISO as a rating factor.This is signifacant as State Farm nationally insures about 20% of all residential properties and is the largest insurance company.
State Farm's new process is called Subzone Rating Factor and will rely on their own experience for insured losses. They will use Zip Code areas with similar claim and expense cost trends as a means of generaly defining the specific Sudzone Rating factor."
They go on to claim how much better and cheaper this will be.
This has allready happened in Illinois and Michigan.Supposed to happen across the county in the next two years.
If they insure 20% of the property,I assume they pay 20% of ISO's budget.Does this mean the end for ISO?
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