What is the role of the Insurance Services Office (ISO) in the insurance industry?

The Insurance Services Office (ISO) plays a crucial role in the insurance industry primarily by providing statistical information and standardized policy language. This organization collects data related to insurance claims and losses, which insurers use to analyze risks and set appropriate premium rates. Additionally, ISO develops and maintains standardized policy forms and endorsements that ensure consistency across insurance products. This helps both insurers and policyholders by making policy terms clearer and more easily understood.

The standardized language and statistical data contributed by ISO help insurance companies to underwrite policies effectively and manage risks more accurately. By providing these resources, ISO supports insurers in delivering products that meet regulatory requirements and address market needs. This information is vital for insurers to maintain competitiveness and align their offerings with industry standards.