Bill to Prohibit Insurer Use of Credit-Based Scores Defeated in Colorado
West News • January 26, 2005
On Tuesday, Colorado legislators "wisely" defeated a proposal to ban the use of credit-based insurance scores (SB 5), according to the American Insurance Association (AIA).
"The Senate Business ...
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Subject: RE: RE: RE: Jimmy, give me a break
Posted On: January 27, 2005, 1:57 pm CST
Posted By: LLCJ
Comment:
Smart agents deal with handfuls (at most 100s of claims). The databases that do these number crunchings have hundreds of thousands of records.
When will people realize that statistical analysis done by insurance companies is done to be better predictors of bad risks. It is to this end that insurers do correlational studies using multi variate methods. Some things that people thought would have been indicators of bad risk end up being proven false. Others surprisingly are indicative of bad risk.
Read the study done by an the texas department of insurance. http://www.tdi.state.tx.us/commish/credit3.html
It's not about bad driving, everybody! It's also about paying claims. After all that's why an insurance company exists. Credit scoring is the truest way to predict claims. And even that should make intuitive sense.
West News 
Subject: RE: RE: RE: Jimmy, give me a break
When will people realize that statistical analysis done by insurance companies is done to be better predictors of bad risks. It is to this end that insurers do correlational studies using multi variate methods. Some things that people thought would have been indicators of bad risk end up being proven false. Others surprisingly are indicative of bad risk.
Read the study done by an the texas department of insurance. http://www.tdi.state.tx.us/commish/credit3.html
It's not about bad driving, everybody! It's also about paying claims. After all that's why an insurance company exists. Credit scoring is the truest way to predict claims. And even that should make intuitive sense.