Scoring pricing news
Industry social scoring https://www.insurance.wa.gov/news/kreidler-bill-ban-insurers-using-credit-scores-goes-senate-jan-14
4 replies (most recent on top)
Redlining. Profiling and scoring. Calling it risk management snd data analysis.
Use to be illegal. Illinois is the worst guinea pig and insurance if all sorts is not a service. It’s a data grab
This will mean rate increases for all to cover the losses of those that Allstate would probably not insure before this was banned.
" state insurance officials are always in bed with the insurance companies"...not really, especially CA, and NY, they can be very hard on insurance companies.
In theory sounds good and I support it. However many states have forced insurance companies to remove credit rating as a premium risk factor and the companies just add additional risk factors that target specific zip codes of minority and lower income areas. Allstate internally calls it "The Poorsies". Allstate has this implemented in the states where credit rating is not allowed in risk assessing. If course the state insurance commissions approve the new zip code target risk factors as state insurance officials are always in bed with the insurance companies getting their piece of the cash pie.