Actuaries Have Special Role When Explaining Credit Scores and Losses
National News • November 16, 2007
By explaining why there is an association between credit scores and insurance losses, insurers and actuaries can promote a better understanding of why credit scores are a useful underwriting tool, ...
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Subject: Credit Scoring
Posted On: November 16, 2007, 9:23 am CST
Posted By: Dustin
Comment:
I am surprised no one has jumped on this to say how the use of credit score is so terrible, and not an accurate indicator of risk. I only hope that the actuaries are able to explain why we should use credit scoring to rate; however, even if they can give the best explanation that doesn't even leave one inch of room for doubt, people will moan and complain about it because anything that makes their insurance go up is wrong. While credit score is not the sole determinant in accidents or propensity for taking risks, when used with other underwriting and rating data it provides a much more accurate rating of the risk.
Subject: Credit Scoring