American Insurance Association (AIA) vice president and assistant general counsel David Snyder responded to the release of effect of credit scoring on auto insurance underwriting and pricing, a study by the Washington Office of the Insurance Commissioner (OIC).
“It will take some time to examine the study, its methodology and findings in more detail. But an initial read would seem to indicate that the study is inconclusive at best, and certainly does not offer any evidence that insurance scoring is inconsistent with existing laws governing insurers’ rating and underwriting practices. There are 207 insurance companies that sell personal automobile policies in the state of Washington – this report looks at three of those companies.
“The OIC itself admits that the study is limited in scope and inconclusive in its findings. Indeed, the report’s ‘recommendations’ are, more than anything, an admission that the study should be viewed carefully. To quote the study, ‘Unequal effects are too common to be random events, but too varied across different insurers’ situations for a clear pattern to emerge.’
“The use of credit-based insurance scoring has encouraged competition and enabled insurers to more precisely underwrite and price their products, allowing individual consumers to pay a more accurate price. Because insurers can more exactly pinpoint the risk a particular consumer presents, they can rate them accordingly.”
Topics Washington
Was this article valuable?
Here are more articles you may enjoy.
Insurance Broker Stocks Sink as AI App Sparks Disruption Fears 
What Analysts Are Saying About the 2026 P/C Insurance Market 
US Appeals Court Rejects Challenge to Trump’s Efforts to Ban DEI 
Allstate CEO Wilson Takes on Affordability Issue During Earnings Call 
