National Association of Mutual Insurance Companies (NAMIC) Federal Affairs vice president, Monte Ward, issued the following statement in
response to the National Association of Realtors (NAR) media briefing, regarding access to and cost of insurance as barriers to homeownership.
“The allegations made by the realtors regarding homeowners being unable to secure insurance coverage are unfounded,” Ward said. “In addition, the use of consumer credit information has existed for decades and is widely used by other financial services industries, including home mortgage lenders.”
“Credit-based insurance scoring has been shown to be a strong predictor of insurance loss, allowing companies to more accurately underwrite and rate their business,” Ward continued. “As a result of credit-based insurance scoring, many companies affirm that they can write more business with greater confidence, and most policyholders directly benefit realizing better rates and more choices in the marketplace.”
“Insurers consider this information because of the ongoing concern about the accuracy of risk evaluation, as it allows companies to reward customers who are less likely to incur losses with lower premiums, and because it helps to make insurance more widely available,” Ward added.
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