August 2002

What is BCEGS? | Technology Today

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What is BCEGS?

by Mark S. Graham
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Another acronym is entering the U.S. building construction industry's vernacular—BCEGS (pronounced "be-sags") refers to building code effectiveness grading system. Because BCEGS likely will significantly affect, albeit somewhat indirectly, the building construction industry, you should become familiar with it.


BCEGS was developed and is administered by the Insurance Services Office (ISO) Inc., which compiles statistical, actuarial, underwriting and claims information for the insurance industry. BCEGS assesses building codes in effect in communities and how the communities enforce their codes; BCEGS specifically emphasizes mitigation of losses from natural hazards, such as earthquakes, fires, wind and hail.

The fundamental concept of BCEGS is straightforward: Building code jurisdictions with well-enforced, up-to-date codes should demonstrate better loss experiences, and insurance premiums can reflect that. The prospects of mitigating losses and, ultimately, lowering insurance costs provide incentives for communities to rigorously adopt, update and...

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