It is my opinion as a licensed P&C agent that credit scoring is somewhat discriminatory against your average insured. I have noticed that good clients with no history of losses are being penalized due to their not so perfect credit score issued. A lot of our clients are business oriented clients who buy and sell properties, which has an effect on their credit scoring, even though they pay their bills on time. Credit scoring does not always paint an accurate picture of the client’s insurance rating.
I live in the state of IL. Auto insurance is a state requirement. I currently work in the insurance industry and feel that insurance scoring is hurting alot of people. With some companies you have to have a certain score to get into this company. This is discrimination!!!! Some people have a hard enough time paying their insurance without adding this surcharge to their policy.
I am an insurance agent in Maryland. Our state currently has the toughest insurance credit scoring statutes on the books. We are unable to use credit scoring for homeowners – period. For automobile, we can only use it on the front end to a certain degree. Even that may be gone within the next few weeks. I am a firm believer in credit scoring ONLY if it used uniformly after the NAIC model. I do not believe every company should have their own algorithm to come up with a credit score. This prevents all companies from “tweeking” their own rules and regulations using credit to their own advantage. By using a uniform model, I do not believe it is discrimination. I have seen first hand that when credit scoring was thrown out for homeowner insurance in Maryland, the underwriting requirements were tightened and the rates went up sky high. For auto insurance – again underwriting toughened up and for those high value clients the rates went way up whereas the clients with not so good credit the rates went down somewhat. My loss ratio was less and I was writing more business before HB521 came into play. Be aware, you may get what you ask for. Don’t say I didn’t warn you!
I have been a State Farm agent 34 years and have a little over 2000 cars insured. Because of credit scoring last year I was only able to qualify 9 new auto sales for the entire year. This is typical of the State Farm agents across the country. The people that are hardest hit are the poor and elderly. To allow credit in any amount gives the company a free hand to do anything they want.
I am the president of the National Association of State Farm Agents and this is a typical case. We have a resolution against Credit Scoring as does the Agents associations of Farmers, Allstate and Nationwide.
David Swift
In my opinion credit scores should not be relevant when buying insurance. Our Elderly and people who have had insurance for years with no lapse in coverage pay the price with less than perfect credit score. Information on 3 Bureau Credit Reports most of time are not accurate and do not really portray policyholders worthiness. It does not make any sense to me.
It is my opinion as a licensed P&C agent that credit scoring is somewhat discriminatory against your average insured. I have noticed that good clients with no history of losses are being penalized due to their not so perfect credit score issued. A lot of our clients are business oriented clients who buy and sell properties, which has an effect on their credit scoring, even though they pay their bills on time. Credit scoring does not always paint an accurate picture of the client’s insurance rating.
I live in the state of IL. Auto insurance is a state requirement. I currently work in the insurance industry and feel that insurance scoring is hurting alot of people. With some companies you have to have a certain score to get into this company. This is discrimination!!!! Some people have a hard enough time paying their insurance without adding this surcharge to their policy.
I am an insurance agent in Maryland. Our state currently has the toughest insurance credit scoring statutes on the books. We are unable to use credit scoring for homeowners – period. For automobile, we can only use it on the front end to a certain degree. Even that may be gone within the next few weeks. I am a firm believer in credit scoring ONLY if it used uniformly after the NAIC model. I do not believe every company should have their own algorithm to come up with a credit score. This prevents all companies from “tweeking” their own rules and regulations using credit to their own advantage. By using a uniform model, I do not believe it is discrimination. I have seen first hand that when credit scoring was thrown out for homeowner insurance in Maryland, the underwriting requirements were tightened and the rates went up sky high. For auto insurance – again underwriting toughened up and for those high value clients the rates went way up whereas the clients with not so good credit the rates went down somewhat. My loss ratio was less and I was writing more business before HB521 came into play. Be aware, you may get what you ask for. Don’t say I didn’t warn you!
I have been a State Farm agent 34 years and have a little over 2000 cars insured. Because of credit scoring last year I was only able to qualify 9 new auto sales for the entire year. This is typical of the State Farm agents across the country. The people that are hardest hit are the poor and elderly. To allow credit in any amount gives the company a free hand to do anything they want.
I am the president of the National Association of State Farm Agents and this is a typical case. We have a resolution against Credit Scoring as does the Agents associations of Farmers, Allstate and Nationwide.
David Swift
In my opinion credit scores should not be relevant when buying insurance. Our Elderly and people who have had insurance for years with no lapse in coverage pay the price with less than perfect credit score. Information on 3 Bureau Credit Reports most of time are not accurate and do not really portray policyholders worthiness. It does not make any sense to me.
Insurance scoring is nothing more than a thinly disguised ‘revenue enhancement’ for insurance companies at the expense of their customers.
I always find something new and interesting every time I come around here – thanks.