Posted On: June 21, 2004, 7:15 pm CDT

Posted By: Mark W. Kinsey, CRA

The downward spiral of underwriting continues. With credit scoring, underwriters aren't needed because scores don't require facts, circumstances or judgement. "Know Your Client"? JOKE..even if you do the companies inability to manage their cost precludes them from hiring experienced personel to make judgements because judgements are profitable. Predictive models are only as good as the companies ability to harvest and input information in a logical format that will speed a process that use to take a simple phone call to a real underwriter that had the ability to make a judgement based on trust earned by both parties. Let's replace all company management bean counters and replace them with real insurance people and empower those people to make judgements once again so the industry can stop the insolvency game and return to fair price for a fair product once again.
The industry unfortunately is like a bunch of lemings....once more over the cliff.