Please walk me through how being white has anything to do with this.
People aren’t going to college because of the debt-load. Now is the time to address this issue, as well as college expense in general. Now we have a leader that could bring both parties together to figure out how we go forward and get more of our citizens educated. We’ll have higher-minded individuals and evidently, cheaper auto insurance rates. Win/win.
Well Jack, the facts are pretty clear that blacks are less likely to have a college degree than whites. The author cites “systematic racism” and I guess that’s their opinion for the disparity. I don’t profess to know and will let you tackle that question. My issue has more to do with the validity and collection of the data. It’s an underwriting variable that the companies don’t verify and in most cases it has a small effect on rate. That makes me wonder why companies would want to use it. Personally, I’d remove anything that can’t pass the “60 Minutes” test and this one wouldn’t.
Underwriting criteria already in place has a disproportionate negative rate impact on minority communities. Credit and territory are two very good examples. This is just one more differentiator in the blender.
It’s my opinion based on my decades in this business that rates should be based on driving record, age, and territory primarily since I haven’t witnessed firsthand any of these other criteria having a major impact on claims filed.
“The consumer-advocacy group sought price quotes from several insurance companies for a hypothetical person, varying only the individual’s education or occupation.”
They didn’t change the person’s race.
Race is not driving the premium changes discussed in this article.
Should society ban the use of a factor based on positive behavior (college graduation, attainment of a certain profession or paying off your bills on time for credit) because certain demographics have not yet attained the desirable goals?
Or should society keep these factors base on positive actions to encourage all of society to shoot for these goals? The end result might be equality and satisfaction for all.
Please walk me through how being white has anything to do with this.
People aren’t going to college because of the debt-load. Now is the time to address this issue, as well as college expense in general. Now we have a leader that could bring both parties together to figure out how we go forward and get more of our citizens educated. We’ll have higher-minded individuals and evidently, cheaper auto insurance rates. Win/win.
Well Jack, the facts are pretty clear that blacks are less likely to have a college degree than whites. The author cites “systematic racism” and I guess that’s their opinion for the disparity. I don’t profess to know and will let you tackle that question. My issue has more to do with the validity and collection of the data. It’s an underwriting variable that the companies don’t verify and in most cases it has a small effect on rate. That makes me wonder why companies would want to use it. Personally, I’d remove anything that can’t pass the “60 Minutes” test and this one wouldn’t.
Underwriting criteria already in place has a disproportionate negative rate impact on minority communities. Credit and territory are two very good examples. This is just one more differentiator in the blender.
It’s my opinion based on my decades in this business that rates should be based on driving record, age, and territory primarily since I haven’t witnessed firsthand any of these other criteria having a major impact on claims filed.
Couldn’t agree more. Well said.
“The consumer-advocacy group sought price quotes from several insurance companies for a hypothetical person, varying only the individual’s education or occupation.”
They didn’t change the person’s race.
Race is not driving the premium changes discussed in this article.
Is being an insurance agent considered low level employment?
This issue is much like the use of credit rating.
Should society ban the use of a factor based on positive behavior (college graduation, attainment of a certain profession or paying off your bills on time for credit) because certain demographics have not yet attained the desirable goals?
Or should society keep these factors base on positive actions to encourage all of society to shoot for these goals? The end result might be equality and satisfaction for all.