Verisk Analytics, Inc.’s (VRSK - Free Report) business, ISO, announced that 42 states and U.S. territories have implemented its cyber insurance program, which features an array of coverage options and extensive rating information to help insurers address the growing and diverse cyber market.
ISO’s rating plan features unprecedented levels of detail in primary and excess pricing information. Flexible coverage solutions can help insurers protect businesses from cyber risks in a timely, insightful and operationally efficient manner.
ISO provides access to a robust suite of cyber insurance products that enable to underwrite coverage based on the specific risk characteristics of policyholders, which is particularly useful considering the rapid expansion of the market. It provides insurers with versatile tools to help meet the wide range of companies in the marketplace
The ISO program features advisory loss costs using 17 different rating variables and was developed using predictive analytics applied to more than 32,000 historical cases. It also features coverage solutions for small and medium-sized businesses — often the most vulnerable to cyberattacks — as well as coverages for large commercial enterprises, government and non-profit organizations.
Per Verisk’s estimates, written premium for the commercial cyber liability market will reach to $6.2 billion by 2020, with annual take-up rates growing at 20-30% in the coming years. It aims to create long-term value through organic growth and better return on invested capital. The company continuously seeks to leverage its deep knowledge and embedded position while working in unison with customers to understand their evolving needs.
Verisk offers a wide range of solutions to support cyber insurance programs. The scalability of its products has led to highly cash-generative businesses characterized by high net margins and relatively low capital intensity. Verisk’s shares have outperformed the industry in the last three months, with an average return of 8.7% compared with growth of 6.8% for the latter.
Verisk continues to expand its footprint in new markets with healthy long-term growth potential, through targeted international expansion. This holistic growth model augurs well to strengthen its leading position in the market.
Zacks Rank and Other Stocks to Consider
Verisk has a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry are The Dun & Bradstreet Corp. (DNB - Free Report) , FactSet Research Systems Inc. (FDS - Free Report) and S&P Global Inc. (SPGI - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dun & Bradstreet has an expected long-term earnings growth rate of 4.5%. It exceeded estimates in each of the trailing four quarters with an average of 11.8%.
FactSet Research has an expected long-term earnings growth rate of 10.9%. It beat estimates in each of the trailing four quarters with an average of 1.2%.
S&P Global has an expected long-term earnings growth rate of 14.5%. It exceeded estimates in each of the trailing four quarters with an average of 12.8%.
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