Global Champions - VRSK

Verisk is a data analytics and risk assessment firm with dominant positions in insurance and energy information services. Of these two segments, insurance accounts for the vast majority of Verisk’s value. Insurance is a fairly acyclical industry and has historically grown in line with GDP, naturally growing as business activity grows. Verisk serves this industry by collecting sensitive and proprietary data from insurance companies, and then these companies, in turn, subscribe to Verisk’s mission critical data and analytics to optimize their pricing as they underwrite policies. Since the network effects inherent in this business make their database nearly impossible to replicate, and their cost is a very small percentage of company budgets, they can almost imperceptibly pass on price increases year after year which drop to the bottom line and allow them to boast high profit margins. Due to this pricing power and developing new support solutions that are deeply integrated into customer work-flows, we believe Verisk is likely to grow both pricing and volume faster than its industry over time.

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