NAMIC: Against Anti-Insurance Scoring Measure
28 Feb 2008
WASHINGTON, Connecticut – The National Association of Mutual Insurance Companies (NAMIC) investigates the use of credit-based insurance scores.
It is said if the scores will be banned, the consumer have to pay more, because the insurance rates will rise. “By prohibiting insurers’ use of credit-based insurance scores in the pricing of auto insurance, HB-5151 would hamper insurers’ ability to utilize a valid predictive tool to assess risk and price it appropriately,” said Paul Tetrault, NAMIC’s Northeast state affairs manager. “It would interfere with the efficient functioning of the insurance market, leading to cross-subsidization and higher prices for insureds with good credit histories.”
Studies showed that the credit-based insurance scores are needed because they are helpful for consumer’s claims. Furthermore they are helpful for the insurer, because they make risks’ evaluations much easier.
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