Posted On: May 29, 2008, 1:42 am CDT

Posted By: Gill Fin

If you can think of dozens of predictive modeling criteria, in addition to driving record, current insurance, garaged location, age and gender of driver, and credit scoring, then you should form 'Mutual of Frustrated Insurance Company', because you are way ahead of actuaries everywhere. You seem to overlook the 900 pound gorilla in the corner - that policyholders clamor for the lowest possible premium, in spite of those confounded insurers who, how did you put it 'The insurance companies believe that all of the premiums collected belong to them and they don't want to be penalized by paying claims'. Yeah, penalized by paying claims. Thats it alright. As an insured, frustrated, are you willing to pay more so that others with poor credit pay less, like the old days (five or more years ago).
I thought not. Your one of those 'its OK for the next guy, but I'm not paying more'. You'll notice, frustrated, that Geico advertises a savings of 15% to entice new business. They don't advertise that they forsake the use of credit scoring, now do they? Gee, I wonder what they are missing.

Your words reveal you to be full of hooey, with little or no understanding of how premium dollars are distributed back to policyholders in claims payments, and how that action affects premiums. Do you ever consider that the auto insurance market is oversaturated with carriers, some of whom have no business even interacting with the public? And the overabundance of carriers has artificially lowered premiums? And yet you want us to believe in this age of artificially low premiums, that somehow, magically, insurers are enjoying increased revenues at the expense of drivers with clean records? Sorry, frustrated, you don't know what you are talking about. Credit scoring is a revenue neutral competitive tool, with the objective of any carrier being the garnering of the best, least risk P & C book of business. Thats where the money is. Now back to the grassy knoll with you!