NY does not allow any personal auto carrier to re-profile the credit on renewal - except for an 'upgrade' to a better tier/program. This was the 'deal' legislators cut with the insurance industry when NY allowed credit profiling for Personal Auto insurance in NY.
All of the other underwriting considerations (at-fault accidents, convictions, claims, etc) are still used at renewal. What does this tell us?
How do agents handle credit scoring?
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inscopywriter
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Re: How do agents handle credit scoring?
Not to quibble with you, but I believe you mean "can be used at renewal," not "are still used at renewal." Remember, running all of these reports (MVR, CLUE, credit) costs money. If the company does not have any indication or reason to believe that the reports have changed, they're probably not going to run them at every renewal.darnovak wrote:NY does not allow any personal auto carrier to re-profile the credit on renewal - except for an 'upgrade' to a better tier/program. This was the 'deal' legislators cut with the insurance industry when NY allowed credit profiling for Personal Auto insurance in NY.
All of the other underwriting considerations (at-fault accidents, convictions, claims, etc) are still used at renewal. What does this tell us?
The fact that the insurance companies are not allowed to use all of the rating factors they may like to use - actuarially justified or not - doesn't necessarily tell us anything, does it? That the legislature or DOI wants to restrict certain factors, or not, tells us that they don't want companies using those factors, or at least want to tell them how to use them.
Do you have a guess about what this tells us, if anything? I can't see much beyond legitimate concern over abuse/misuse, and simple political populism.