The Use of Credit Scoring in RATING personal insurance

Some thoughts on the significant activity regarding credit scoring.

Some points:

The use of credit scoring has become widespread. Over 50% of companies are using credit scores when they underwrite.

There is little transparency with what these companies are using the information for.

There is no consistency with how the industry uses the information.

The "Insurance Companies" use of propriety rights makes it almost impossible for consumers to be informed on how using their credit score may affect them.

In this case, more regulation will produce better protections for those who are seeking insurance.

It is clear that many insurers are not handling the informaion in a responsible manner and this leads to less fairness and less confidence.

Insurance Brokers are supporting a complete ban on the use of credit scoring for personal insurance.

For more information, or any questions, regarding how credit scoring will affect your insurance CALL my office at: 416-233-8252