Verisk Analytics, Inc. (VRSK): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-nonsense breakdown of how Verisk Analytics, Inc. actually generates its revenue, especially as they pivot hard into AI-enhanced insurance intelligence. Honestly, the core story is a data utility that owns the foundational intelligence for US insurance, driving 84% of its Q3 2025 revenue from sticky subscriptions alone. Think about it: their massive proprietary data assets, sitting at over 34 billion records, power everything from ISO forms to anti-fraud tech that saved insurers an estimated $10 billion in 2024, all while they guide the business toward a projected $3.05 billion in total 2025 revenue. If you want to see the full nine blocks-from their key partnerships with tech giants to their cost structure-dive into the canvas below.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Key Partnerships

You're looking at how Verisk Analytics, Inc. (VRSK) is building out its ecosystem through strategic moves, and the numbers here really tell the story of their focus on claims and data integration.

The acquisition of AccuLynx, announced in July 2025, is a prime example of this strategy, costing $2.35 billion in cash. This deal is expected to be additive to Verisk Analytics' revenue growth and adjusted EBITDA margin for 2025, and management projected AccuLynx would contribute about $150 million in revenue for the full year 2025. This move targets a Total Addressable Market (TAM) estimated at $2 billion for roofing and restoration workflow management. To give you context on the data value, Verisk data suggests that roofing materials account for more than a third of property insurance claim value.

The integration of these key relationships and acquisitions can be summarized with these figures:

Verisk Analytics also expanded its catastrophe risk modeling capabilities by acquiring Nasdaq Risk Modelling for Catastrophes (NRMC) in April 2025. This platform is built on the OASIS Loss Modelling Framework and provides access to an ecosystem featuring more than 300+ third-party models, giving clients wider views of global risk.

The strategic alliance solidified on June 30, 2025, with WTW to integrate Verisk's ISO Electronic Rating Content™ (ISO ERC) into WTW's Radar analytics platform is about speed. This integration allows insurers to implement ISO updates in minutes, a massive operational improvement over the traditional timelines that often spanned months.

When it comes to data contributors, Verisk Analytics relies on several sources, which is defintely a core strength:

• Customer data gathered through agreements where customers also use the resulting solutions.
• Agreements specifying data use, privacy, and de-identification requirements.
• Data 'mined' from transactions, such as claims settlement data from repair cost estimating solutions.
• Public sources, including federal, state, and local government data, generally sourced at no cost.
• Data purchased from third-party aggregators under contracts reflecting prevailing market pricing.

It is very rare that data contributors elect not to continue providing data, showing high partner retention in their data agreements. For technology infrastructure, Verisk Analytics continues to build on its relationship with partners like Google Cloud and NVIDIA to scale AI development, leveraging platforms such as NVIDIA DGX Cloud service on Google Cloud for generative AI applications.

Finance: review the debt financing structure for the $2.35 billion AccuLynx deal by Monday.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Key Activities

You're looking at the core engine of Verisk Analytics, Inc. (VRSK) as of late 2025-what they actually spend their time and capital doing to keep that subscription revenue flowing.

Curating and managing over 30 petabytes of proprietary data.

Developing and deploying AI-enhanced solutions is a major focus. The launch of XactAI in September 2025 brought new automated capabilities to the Xactware claims suite, using generative AI for tasks like Note Summarization and Automatic Photo Labeling. This builds on existing AI integration; for instance, incorporating OneClick Code's data into XactAnalysis in 2025 helped streamline property claims processing by reducing research time up to 40%.

Maintaining and updating ISO forms, rules, and loss cost services is foundational. Verisk's ISO team is constantly monitoring the regulatory environment, reviewing over 10,000+ bills, 8,000+ regulatory actions, and 2,000+ court decisions each year to keep language current. For example, the 2025 ISO General Liability multistate filing, submitted July 17, 2025, included forms (GL-2025-OFR25) and rules (GL-2025-ORU25) with a proposed effective date of 1/1/2026. Furthermore, revisions to the SCOPES manual and BGI rating approach were anticipated to start filing in Q2 2025.

Executing a disciplined M&A strategy remains a key activity for expanding the insurance tech ecosystem. The company closed on the acquisition of SuranceBay on July 17, 2025, for $163 million, and signed an agreement to acquire AccuLynx for $2.35 billion. Management had previously expected revenue contribution in the range of $40 million to $50 million from all 2025 acquisitions.

The firm is running a new, improved sales model to drive client engagement, which is clearly paying off in the subscription base. Subscription revenues, which made up 84% of total revenue in Q3 2025, grew 8.7% on an organic constant currency basis in that quarter. The sales teams are exceeding expectations.

Here's a quick look at the M&A and sales performance metrics for 2025:

The success of the sales model is evident in the overall subscription performance, which saw 10.6% organic growth in Q1 2025.

• Review of legislative/regulatory actions annually: 10,000+ bills and 8,000+ regulatory actions.
• Review of court decisions annually: 2,000+ court decisions.
• ISO General Liability Forms/Rules Filing Proposed Effective Date: 1/1/2026.
• AI-enhanced research time reduction in XactAnalysis: up to 40%.

If onboarding for new AI features takes longer than expected, client adoption rates could slow down, defintely impacting that double-quota achievement.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Key Resources

You're looking at the core assets that make Verisk Analytics, Inc. such a sticky partner for the insurance world. These aren't just line items; they are the moat protecting their business.

Massive proprietary data assets (over 34 billion records).

The sheer volume of data Verisk Analytics, Inc. ingests and processes is central to its offering. While the exact record count is a key input for your model, we can see the impact of this data foundation in their market penetration.

• Data used as the basis for reports accounting for roughly 97% of all business written by U.S. P&C insurers.

Core intellectual property (ISO rating content and predictive models).

The value here is in the standardization and acceptance of their Intellectual Property (IP). The ISO rating content, for example, is the industry standard for policy forms and statistical loss costs. This IP is protected by a range of rights.

• Policy language, insurance manuals, software, and databases are protected by both registered and common law copyrights.
• The business continuity program adheres to ISO 22301:2019, an international standard for business continuity.
• Core data centers earned ISO 27001:2013 Certification for Information Security Management System best practices.

Scalable, cloud-based SaaS platforms (e.g., Xactware system).

The delivery mechanism is as important as the data itself. Platforms like Xactware are where the rubber meets the road for claims professionals. You saw the recent push with the launch of XactAI on September 30, 2025, which integrates generative AI for tasks like note summarization and photo labeling within the Xactware suite for property claims. Also, the integration with ServiceTitan's platform allows contractors to load data directly into the Xactimate Claims Management System for estimate validation. That's deep workflow embedding.

Highly specialized data scientists and software engineers.

The human capital required to maintain and advance these complex models is a significant resource. The company employed approximately 7.8K people as of September 2025. Personnel expenses are a major cost driver, making up about 56% of total operating expenses for the nine-month period ending September 30, 2025.

Investment-grade balance sheet with strong cash flow generation.

This is where the financial strength backs up the operational assets. Verisk Analytics, Inc. showed robust cash generation in Q3 2025, which is a hallmark of this business model. If onboarding takes 14+ days, churn risk rises, but strong cash flow helps fund the necessary R&D.

Here's the quick math on the cash flow strength from Q3 2025:

The balance sheet supports this activity. As of September 2025, total assets stood at $6.24B, with cash and equivalents at $2.11B. The full-year 2025 guidance for Adjusted EBITDA was projected to be between $1.69 billion and $1.72 billion, showing excellent operating leverage potential.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Value Propositions

You're looking at the core value Verisk Analytics, Inc. (VRSK) delivers to its clients, primarily in the insurance sector. It's about making risk quantifiable and operations smoother.

Foundational intelligence for accurate risk pricing and underwriting.

Verisk Analytics, Inc. (VRSK) provides the historical and predictive data that forms the bedrock for setting insurance prices. This intelligence is deeply embedded, stemming from its roots in the Insurance Services Office (ISO), which standardized data starting in 1971 to help the property and casualty (P&C) industry price risk accurately. The focus now is on proprietary data assets and advanced technology to offer predictive analytics for decision support across the insurance lifecycle.

The strength of this segment is evident in the financial performance of the underwriting business. For the third quarter of 2025, underwriting revenues increased by 6.9% year-over-year, reaching $532 million in Q1 2025. For the full year 2024, consolidated revenues were $2,882 million.

Streamlined claims workflow and property estimating solutions.

For claims, Verisk Analytics, Inc. (VRSK) helps speed up processing and improve accuracy. This is where their property estimating solutions come into play, which are critical for handling the aftermath of property damage events. Claims revenue growth reflects the demand for these tools. In the fourth quarter of 2024, claims revenue grew 13.0% year-over-year, driven by property estimating solutions and anti-fraud solutions. For Q3 2025, claims revenues grew 3.6% from the prior year.

Anti-fraud solutions that helped save insurers an estimated $10 billion in 2024.

Combating fraud is a major value driver. Verisk Analytics, Inc. (VRSK) anti-fraud solutions are designed to detect and disrupt fraudulent activity early in the claims process. The impact here is concrete: these solutions helped save insurers an estimated $10 billion in 2024. This value is directly reflected in the claims revenue growth figures, showing client adoption of these tools.

Rapid regulatory compliance via fast ISO Electronic Rating Content updates.

Keeping up with regulatory changes is a constant administrative burden for insurers, as ISO releases, on average, more than 75 circulars each week. Verisk Analytics, Inc. (VRSK) offers ISO Electronic Rating Content (ERC) to automate this. Insurers using ISO ERC are 33% more likely to be current with their regulatory reporting.

Here's the quick math on efficiency gains from using ERC:

• Spend 63% less work time processing a typical ISO circular.
• Complete such changes with 70% less elapsed time.
• Eliminate analysis and interpretation, which represents 30% of an insurer's overall work effort, by using Human-Readable Content (HRC).

Catastrophe modeling and extreme event risk assessment.

When major events happen, the ability to model potential losses is essential for capital planning. Verisk Analytics, Inc. (VRSK)'s Extreme Event Solutions business provides the models relied upon by global insurers. The 2025 Global Modeled Catastrophe Losses Report showed a significant shift in risk exposure.

You need to see the scale of the risk landscape Verisk Analytics, Inc. (VRSK) is helping clients navigate:

Still, this segment is sensitive to actual weather patterns. A historically low level of severe weather events in Q3 2025 negatively impacted growth by approximately 1%.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Customer Relationships

You're looking at how Verisk Analytics, Inc. (VRSK) keeps its major insurance and energy clients locked in, which is the core of their high-margin, recurring revenue story. The relationship strategy is clearly bifurcated: deep, personal engagement at the top, and seamless, automated access for daily operations.

High-touch, strategic C-suite engagement for large carriers.

Verisk Analytics, Inc. actively seeks a 'counselor' role with its largest partners. CEO and President Lee Shavel has been leading this effort, initiating conversations to understand the broader industry needs, not just product-specific ones. This high-level dialogue, often through CEO and CIO roundtables and individual meetings, is crucial for aligning Verisk's innovation pipeline with the strategic direction of major carriers. Clients have clearly expressed their desire for this strategic dialogue to support their growing data, analytical, and technological requirements. This focus is paying off; through these C-suite engagements, Verisk continues to hear support for providing more data and integrating that data more deeply into client systems and the wider industry ecosystem for efficiency gains. This consultative approach helps Verisk navigate complex areas like regulatory landscapes and evolving technological environments, which are major concerns for executive teams.

Embedded, sticky solutions leading to high client retention.

The stickiness of Verisk Analytics, Inc.'s offerings is evident in the financial results, which are heavily weighted toward predictable, recurring revenue. As of the first quarter of 2025, subscription-based offerings accounted for 83% of total revenue, showing how embedded these solutions are in client workflows. This model provides a strong margin buffer, with Q1 2025 Adjusted EBITDA margins reaching 55.3%, up from 54.3% a year earlier. The success of this embedding is reflected in client loyalty; Verisk Analytics, Inc. reported that 92% of clients renewed their contracts in 2024. Furthermore, price realization within those renewals was a significant driver, contributing 15% of the revenue growth seen in Q1 2025. The entire operational framework is built on this continuous loop of data collection, standardization, analysis, and integration, making the solutions integral to the entire policy lifecycle.

Here's a quick look at how the subscription engine is outperforming transactional elements:

Dedicated account management and consultative sales teams.

To manage these deep relationships and drive expansion, Verisk Analytics, Inc. relies on dedicated teams. The Account Manager role is explicitly designed to build strong, long-lasting customer relationships, ensuring all client needs-both short-term transactional requirements and longer-term strategic objectives-are met. These roles involve more than just account maintenance; they are responsible for the development of new sales opportunities, converting them to confirmed sales, and managing the client through the entire onboarding and contracting process. This structure ensures that the consultative sales effort transitions smoothly into an embedded operational partnership. With a team of nearly 9,000 people, the scale of this dedicated support is substantial, helping clients make crucial decisions every day about risk with greater precision, efficiency, and discipline.

Automated, self-service access via SaaS platforms.

While the top-level engagement is high-touch, the day-to-day interaction is increasingly automated through Software as a Service (SaaS) platforms. Verisk Analytics, Inc. is focused on innovation like the upcoming cloud-native Synergy Studio platform, which is positioned to deliver real-time risk insights. The company's solutions, which include property estimating tools and anti-fraud solutions, are integrated directly into client workflows, which is the essence of self-service access for many functions. For example, claims revenues grew 7.5% in Q1 2025, partly due to the adoption of these automated property estimating and anti-fraud solutions. This automation allows clients to streamline processes, such as achieving up to 90% time saved in certain casualty workflow automations, which translates to a reported 13:1 Return on Investment for those specific solutions. The focus is on moving data and analytics into the client's system so they can act instantly.

The operational focus for the teams is clear:

• Aggressive sales and marketing approach to drive cross-sell.
• Focus on sticky subscription sales over transactional revenue.
• Prioritized agenda centered on delivering cost savings and measurable ROI.
• Liaising across internal teams to ensure all client strategic needs are met.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Channels

You're looking at how Verisk Analytics, Inc. (VRSK) gets its data, software, and insights into the hands of its customers, which is a mix of direct engagement and automated delivery. Honestly, the numbers show a clear strategic pivot toward recurring revenue channels.

The backbone of the delivery mechanism is the Software-as-a-Service (SaaS) platforms. This is where the money is, and it's growing fast. For instance, in the first quarter of 2025, subscription revenue was a massive 83% of the total revenue reported for that period. That subscription stream grew by an impressive 10.6% on an organic constant currency (OCC) basis in Q1 2025. By the third quarter of 2025, that subscription share had crept up even higher to 84% of total revenue, growing 8.7% OCC. This recurring revenue is what management points to for stability.

The direct sales force is definitely targeting those enterprise-level insurance carriers to lock in those big, sticky subscription contracts. While we don't have a clean revenue number just for direct sales, the Underwriting segment, which relies heavily on these large carrier relationships for things like catastrophe modeling and forms management, brought in $532 million in Q1 2025, growing 7.2% OCC. That sales effort is clearly working, as year-to-date sales performance was reported as more than double original quotas as of late 2025.

For integrated data feeds and APIs, this is the system-to-system delivery that makes Verisk Analytics, Inc. indispensable. This delivery method underpins both the subscription and transactional revenue. The Claims segment, which includes property estimating and anti-fraud tools delivered via these integrations, generated $221 million in Q1 2025, showing strong OCC growth of 9.6%. Still, transactional revenue, which often includes usage-based feeds, saw a decline of 4.0% in Q1 2025, partly due to a conversion of some contracts to committed subscriptions, which is a strategic trade-off.

Now, let's talk about the web-based platforms for residential property contractors, specifically the planned integration of AccuLynx. You should know that Verisk Analytics, Inc. signed a definitive agreement to acquire AccuLynx for $2.35 billion in cash. However, due to delays in FTC approval, management explicitly stated they do not expect to realize any material financial benefit from this acquisition in the 2025 fiscal year, and thus, its results have been removed from the 2025 guidance. This is a defintely important nuance for near-term modeling.

Here's a quick look at how the revenue streams, which are delivered through these channels, stacked up in the first half of 2025, using the segment data as a proxy for the channel output:

The overall 2025 revenue guidance, which excludes the impact of the pending AccuLynx deal, sits between $3.03 billion and $3.08 billion. This shows you the expected performance from the existing, established channels for the full year.

You can see the channel strategy is heavily weighted toward embedding Verisk Analytics, Inc. solutions directly into client workflows, which is why the subscription metrics are the most telling:

• Subscription revenue growth was 10.6% OCC in Q1 2025.
• Subscription revenue represented 83% of total revenue in Q1 2025.
• The company completed the $163 million acquisition of SuranceBay in July 2025, which will feed into its Life Solutions channel.
• Full-year 2025 revenue guidance is $3.03B-$3.08B, with an expected adjusted EBITDA margin of 55.0%-55.8%.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Customer Segments

You're looking at the core groups Verisk Analytics, Inc. serves to generate its revenue, which hit between $3.03 billion and $3.08 billion in projected full-year 2025 revenue. The business model is deeply embedded in the insurance ecosystem, which is clear when you look at who pays for the data and analytics.

The primary focus remains on the Property & Casualty space, where Verisk Analytics, Inc. has built its foundation over decades. This segment provides the core forms, rules, and loss cost services that help clients price risk and comply with state reporting requirements.

The customer base is segmented quite clearly, which helps explain the resilience of the subscription revenue, which was 83% of total revenue in Q1 2025.

Here's a breakdown of the key customer groups:

• Property & Casualty (P&C) Insurers, numbering over 1,100+ partners.
• Life and Health Insurers, with over 250+ partners.
• Global reinsurance and catastrophe modeling firms.
• Residential property contractors and claims adjusters.
• General Agencies and Insurance Agents.

The Life and Health segment saw strategic expansion in 2025. Verisk Analytics, Inc. acquired SuranceBay on July 17, 2025, for $162.5 million in cash. This move specifically targeted the producer licensing, onboarding, and compliance needs of the life and annuity market, integrating SuranceBay's SureLC™ software into the FAST platform.

To give you a clearer picture of how these segments relate to the financial performance we saw in 2025, look at this snapshot:

The focus on deep integration across these segments is what drives the subscription model. For instance, the Claims segment, which serves contractors and adjusters with property estimating solutions, grew 9.6% OCC in Q1 2025.

You can see the commitment to these customer groups reflected in the overall business health:

• Subscription revenue growth hit 10.6% OCC in Q1 2025.
• The company is aiming for an Adjusted EBITDA Margin between 55% and 55.8% for the full year 2025.
• The acquisition of SuranceBay is intended to enhance the end-to-end digital experience for carriers, agencies, and agents.

Honestly, the numbers show that the existing P&C base is still the engine, but the strategic buy in July 2025 signals a clear intent to deepen the footprint with the distribution side of the Life and Annuity business, which includes general agencies and agents.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Cost Structure

When you look at the Cost Structure for Verisk Analytics, Inc. (VRSK), you see a business heavily weighted toward intellectual property and the people who create and maintain it. This isn't a low-overhead operation; it's built on high-value, recurring data assets.

A primary cost driver is the high fixed costs for data acquisition and curation. Verisk Analytics, Inc. serves as a leading source of information about insurance risk, which means they must continuously invest in gathering, cleaning, and validating massive, complex datasets across insurance, energy, and specialized markets. This upfront investment in data infrastructure is largely fixed, regardless of short-term transactional volume changes.

Also significant is the significant R&D investment in AI and platform defintely modernization. The company is focused on integrating advanced technologies like remote sensing and machine learning into its offerings to support uses in many markets. This continuous technological evolution requires substantial, non-negotiable spending to maintain a competitive edge and transition clients toward subscription models.

You'll also see substantial personnel costs for specialized data and technology talent. Verisk actively works to optimize this by expanding its presence in markets like Poland and India to access world-class data science and technology talent. Furthermore, they have invested in modernizing internal systems, such as financial and human capital ERP systems, which involves significant project-based personnel and consulting costs.

Here's how the financial projections for 2025 shape up, showing where the cash is allocated outside of core operating expenses:

The interest expense projection reflects the cost of capital, with management noting higher debt balances as a factor. For instance, in the first half of 2025, the company retired its 4.000% Senior Notes due in 2025, which impacts the interest profile for the remainder of the year.

The capital expenditure range of $245 million to $265 million for 2025 covers the necessary investment in the technology backbone that supports the high-margin subscription revenue streams. This spending is directed toward:

• Investing in value-creating opportunities organically and inorganically.
• Developing and scaling AI-enhanced solutions.
• Maintaining and upgrading the core data acquisition and processing systems.

To give you a sense of the scale of other operating costs, Selling, General and Administrative Expenses (SG&A) for the three months ended June 30, 2024, were $101.5 million, an increase of $14.7 million or 16.9% year-over-year, partly due to acquisition-related costs.

Verisk Analytics, Inc. (VRSK) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Verisk Analytics, Inc. (VRSK) revenue generation as of late 2025. It's a model heavily reliant on recurring income, but with important transaction-based components that tie directly to real-world activity.

The core of the business is definitely the subscription model. For the third quarter of 2025, subscription revenue represented a commanding 84% of total revenue. That quarter's total consolidated revenue hit $768 million. Here's the quick math: that means subscription revenue alone was approximately $645.12 million for Q3 2025, growing at 8.7% on an Organic Constant Currency (OCC) basis for the quarter.

Transactional revenue, which flows from claims volumes, acts as a variable component. In Q3 2025, this stream saw a decline of 8.8% on an OCC basis, largely because of an exceptionally low level of severe weather events during the period. Still, the Claims segment overall grew 3.6% year-over-year for the quarter.

For the full fiscal year 2025, Verisk Analytics, Inc. has issued total consolidated revenue guidance in the range of $3.05 billion to $3.08 billion.

We can break down the revenue sources further by looking at the segment data, which gives us insight into the licensing and data fees component. The Underwriting segment, which houses much of the proprietary data, forms, and rules revenue, reported revenue of $542 million in Q3 2025, showing a 5.8% increase on an OCC basis. This growth was primarily driven by forms, rules, and loss cost services, alongside Extreme Event Solutions.

Here is a snapshot of the key revenue figures we have for Q3 2025:

The consulting and professional services component, while not explicitly broken out in the same detail, is embedded within the overall growth narrative, particularly as the company focuses on deeper system integration. CEO Lee Shavel noted strong strategic engagement and expansion of client base, suggesting these services help drive the core subscription adoption and expansion. The company is actively commercializing AI-enhanced solutions, with over 40 clients on XactXpert, which represents a service/implementation revenue opportunity layered on top of the base subscription.

You should note the following drivers and pressures impacting these streams:

• Subscription revenue growth is consistent and resilient, compounding on prior year growth.
• Transactional revenue is highly sensitive to severe weather frequency and severity.
• There is an ongoing, structural headwind from conversions of transactional work to subscription models.
• Sales teams are exceeding ambitious quotas, pointing to strong future subscription bookings.