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: RE: Policyholders want lower rates......
Posted On: November 17, 2007, 11:31 am CST
Posted By: Gill Fin
Comment:
and credit scoring is the latest tool to offer insureds what they want. Furthermore, ability to pay is a factor when considering desirability because policies that lapse for nonpay and then are reinstated are in a different cost and profit category than policies that don't lapse for nonpay. Also, as pointed out in another posting, not all insurers use the tool in the same way. When a client comes to the office we look at all their policies. 9 out of 10 times their auto premium has gone down, usually by $20 or $30 per policy period. That is a result of their good credit working to their advantage. I keep reading about other companies and other outcomes, but thats how it works with my company.
Subject: RE: Policyholders want lower rates......