I have to say, the quotes in this article are the best explination and defense of credit based insurance rating I’ve ever read. David Withers needs to win an award.
Of course using credit is discriminatory, it’s about time someone stopped trying to skirt the issue, come right out and admit it, then explain it. See how much easier it is when we stop trying to be politically correct and just say it? There’s a lesson to be learned here that can be used in life.
Pricing insurance is all about discrimination and segmentation. You break up risks into categories and charge appropriate premium for the potential exposure that segment poses.
We’ve all been so afraid to say “discrimination” because everyone would jump on race or income level… it’s just pricing the risk.
New favorite quote: “Insurance pricing does allow fair discrimination. If statistics show that you can divide a population in a certain way, even though it might appear to be normally discriminatory, it’s fairly discriminatory because the predicted losses line up with the pricing.”
I have to say, the quotes in this article are the best explination and defense of credit based insurance rating I’ve ever read. David Withers needs to win an award.
Of course using credit is discriminatory, it’s about time someone stopped trying to skirt the issue, come right out and admit it, then explain it. See how much easier it is when we stop trying to be politically correct and just say it? There’s a lesson to be learned here that can be used in life.
Pricing insurance is all about discrimination and segmentation. You break up risks into categories and charge appropriate premium for the potential exposure that segment poses.
We’ve all been so afraid to say “discrimination” because everyone would jump on race or income level… it’s just pricing the risk.
New favorite quote: “Insurance pricing does allow fair discrimination. If statistics show that you can divide a population in a certain way, even though it might appear to be normally discriminatory, it’s fairly discriminatory because the predicted losses line up with the pricing.”
You’re my hero!
AMEN! UNFAIR discrimination is illegal, not fair discrimination!