Verisk Analytics: A High-Quality, Wide-Moat Data Analytics Firm but Shares Screen as Overvalued

We are launching coverage of Verisk Analytics VRSK with a $220 fair value estimate and wide moat and Medium Uncertainty ratings. Verisk is the leading provider of data and analytics tools for the U.S. property and casualty insurance industry, supporting customers to better assess and price risk, achieve operating efficiencies, and optimize claim settlement processes. The firm’s solutions and wide economic moat are derived from a vast contributory database and proprietary data assets backed by regulatory-mandated disclosures and deep industry relationships traced to Verisk’s origin as an insurance provider consortium.

Verisk has maintained a leading position across underwriting and rating, and claims solutions over the past decade by leveraging unmatched data assets to deliver mission-critical analytical solutions. Verisk’s customer base includes the top 100 property and casualty insurance providers in the U.S., with most providers utilizing Verisk’s actuarial services and industry standard insurance programs, and about 90% of the U.S. P&C insurance industry by premium volume, as well as state fraud bureaus and law enforcement agencies rely on Verisk’s expansive claims database. Verisk also provides cost estimation tools for building repair and reconstruction, and the firm estimates about 80% of repair contractors in the U.S. and Canada using computerized estimating systems utilize the firm’s solutions.