P&C Industry Outlook
Q: How is the P&C insurance industry's health impacting Verisk?
A: The property and casualty insurance industry is showing strong premium growth and improved profitability, resulting in stronger combined ratios. " This positive outlook benefits Verisk, as they participate in clients' premium growth and see insurers more engaged in investing to improve their business. "

Subscription Revenue Growth
Q: Is current subscription growth sustainable this year?
A: Subscription growth is strong and broad-based, driven by forms, rules, and loss cost, antifraud solutions, and extreme events. " Verisk expects no significant changes and sees no major quarterly variations ahead. "

Pricing Environment
Q: How do you view the pricing environment this year?
A: Verisk sees positive tailwinds in pricing tied to net written premium growth, in line with last year. " The industry's financial strength makes clients more receptive, aiding in good pricing outcomes. "

New Solutions and GenAI Adoption
Q: Which new solutions are gaining traction?
A: Verisk is seeing strong adoption of new products like Discovery Navigator in claims, image forensics in antifraud, Core Lines Reimagine, and Next Generation Models in extreme events. " These innovations are contributing to incremental revenue growth incorporated into their guidance. "

Auto Telematics Discontinuation
Q: Why discontinue the auto telematics offering?
A: Data providers ceased collecting data, leaving insufficient analytical value. " The financial impact is small, and Verisk continues to serve auto insurers significantly with other products like LightSpeed auto, coverage verifier, and damage assessment. "

Catastrophe Bond Business
Q: What's driving growth in the catastrophe bond market?
A: Increased catastrophe risk and the need for diversifying investors are driving the strong cat bond market. " Verisk benefits by providing models and risk assessments through their extreme event business. "

Transactional Revenue Outlook
Q: Are transactional revenues facing headwinds?
A: Yes, due to tough comparisons from last year's strong growth in areas like auto shopping activity, elevated weather patterns, and securitization activity. " These create headwinds for transactional revenue in coming quarters. "

Investment Levels in AI and Platforms
Q: How are internal investments affecting CapEx?
A: Investments in AI and replatforming are within expectations and embedded in guidance. " " Some projects are finite, so investment levels may reduce after completion. " Verisk is integrating generative AI into existing products using current financial models. "

Capital Allocation and M&A
Q: What's the outlook for small-to-medium M&A?
A: Valuations remain high, making attractive returns challenging. " Verisk focuses on opportunities where they can add value and accelerate adoption but remains disciplined in capital allocation. "

Next-Generation Nat Peril Model
Q: What's the impact of the new nat peril model?
A: The Next Generation Models are major enhancements, allowing clients to better estimate and quantify uncertainty of losses. " It's a substantial opportunity to deliver more value, and expectations are reflected in guidance. "