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: traditional rating still the primary factor-to Lori
Posted On: December 3, 2007, 12:25 pm CST
Posted By: Kent
Comment:
I still see the traditional rating factors such as driving and loss records being about 85% of the premiums. Even then, some carriers use loss records differently. The carrier isn't using certain types of losses to deliberately increase premium. The carrier's experience with certain types of losses has simply been better or worse with some more than others so they weigh types of losses differently. I see this more in property than auto underwriting. It doesn't matter if the customer has the best possible credit score - if they have had too many or the wrong type of loss sometimes the carrier won't offer coverage at any price.
Subject: RE: traditional rating still the primary factor-to Lori