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Verisk (VRSK) Unveils Case Law Analytics Solution CourtSide

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Verisk Analytics, Inc. (VRSK - Free Report) yesterday announced that it has launched CourtSide - an analytics solution that tracks and scores insurance-specific court decisions.

The solution's data extraction feature collects decisions from courts, which are then categorized on the basis of topic, business classification and correlation between terms appearing in case law and policy language. It then applies a scoring model to determine the potential impact of court decisions on businesses.It features a library of around 10,000 cases.

According to Ron Beiderman, vice president of commercial lines coverage products at Verisk subsidiary, ISO, “By combining advanced automation and deep domain expertise, CourtSide delivers cutting-edge case law analytics that insurers can use to help improve underwriting, enhance market strategy, and reduce expenses.”

We observe that shares of Verisk have gained a massive 42.3% year to date, significantly outperforming the 33.5% rally of the industry it belongs to.

Our Take

We believe that the buyout will boost Verisk’s Insurance segment that offers analytics in the areas of underwriting & rating, claims, catastrophe modeling and repair cost estimating. Performance in the segment was particularly strong in the last reported quarter with revenues of $468.5 million, up 9.1% year over year on a reported basis and 7.8% at organic constant currency (cc).

Verisk Analytics, Inc. Revenue (TTM)

 

 

Zacks Rank and Stocks to Consider

Verisk currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Huron Consulting (HURN - Free Report) , Western Union (WU - Free Report) and CoreLogic (CLGX - Free Report) . While Huron sport a Zacks Rank #1 (Strong Buy), Western Union and CoreLogic carry a Zacks Rank #2 (Buy).

Long-term earnings (three to five years) growth rate for Huron Consulting, CoreLogic and Western Union is estimated 13.5%, 11% and 9.6%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

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