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: RE: credit scoring: fraud and loss ratios
Posted On: November 19, 2007, 1:00 pm CST
Posted By: Dustin
Comment:
The credit score alone will not give you a high insurance premium. It depends on the company's rating and how much it is weighted on credit. Also, your "insurance score" is not solely your credit in all cases. If everything else looks great, while your credit score will still be an issue, it doesn't mean that it will make up all of your rate. All these things together (# of vehicles, limits, claims experience, age, sex, location, credit, etc.) all go into making the most accurate rate. Again, that is just a small sampling of what makes the rate, and I am by no means an expert on this subject.
Subject: RE: RE: credit scoring: fraud and loss ratios