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: credit scoring: fraud and loss ratios
Posted On: November 19, 2007, 12:55 pm CST
Posted By: Nebraskan
Comment:
Just a question (because not all of us with bad credit scores care to do something fraudulent...I for one, don't care to go to jail or pay heavy fines....in fact, i would be scared to file a claim for fear people would say it was fraud due to my poor credit, but anywho...)
first off, i'm working my butt off to get my credit fixed. so it's low now, but on the way up. but lets say, for arguments sake, that it stays bad over the course of the next 10 years. but on the other hand, in regards to my auto ins, i've had no claims, no accidents, no tickets, etc...is it possible to go into your agent's office and say, "look, my credit sucks, but i take care of my car, i drive safely, wear seatbelt, don't speed, etc...is there anything you can do about my rate?"
meaning, if you are a good customer, that doesn't file claims and always pays premium on time, but has bad credit, once you've proven yourself as a worthy customer, will they rate you as an individual as opposed to putting you in a group of people?
I really hope that makes sense! :)
Thanks to those who answer, i'm neither here nor there on using credit scoring, i just want to know the ins-and-outs!
Subject: RE: credit scoring: fraud and loss ratios
first off, i'm working my butt off to get my credit fixed. so it's low now, but on the way up. but lets say, for arguments sake, that it stays bad over the course of the next 10 years. but on the other hand, in regards to my auto ins, i've had no claims, no accidents, no tickets, etc...is it possible to go into your agent's office and say, "look, my credit sucks, but i take care of my car, i drive safely, wear seatbelt, don't speed, etc...is there anything you can do about my rate?"
meaning, if you are a good customer, that doesn't file claims and always pays premium on time, but has bad credit, once you've proven yourself as a worthy customer, will they rate you as an individual as opposed to putting you in a group of people?
I really hope that makes sense! :)
Thanks to those who answer, i'm neither here nor there on using credit scoring, i just want to know the ins-and-outs!