Once again those who have the most(Insurance companies and Underwriters) pray on the ones with the least by using the credit score method.
Why not enact a premium system that charges premiums by one\’s ability to pay let\’s say eemmm by income!
That would work for most I\’m sure.
Yeah that makes sence. NOT! Charge the people who are in a position that they have to turn in any claim that comes their way less then the ones that ussually will not worry about it. See that is what the insurance score has done for insurers to predict the severity of claims that are turned in to the companies. If we loose the ability to have a predictor we will fall back to what happend 5-8 years ago when the insurance companies were loosing money on fire insurance and then you can just watch the premiums on homeowners go out the roof. I don\’t think anyone likes paying more for insurance no matter if they have money or not but why not try to keep the rates down as low as we can for everyone.
I\’m an industry insider and never thought I would object to credit scoring – until I had a problem with it, related solely to taking out college student loans for my kids.
My credit report contained numerous errors. Although these reports are known to have a high risk of error, the insurers I dealt with admitted that they did absolutely nothing to validate the information. Gee, how do they handle claims? Further, they would not disclose how credit scoring was factored, although it obvious had more weight than a FIVE YEAR CLAIM FREE experience with me. One notice cricized \”too many finance companies\” – so I asked, how many are \”too many\” – one, two, five? No answer – \”proprietary\”, I was told.
Basically, what I was told was they would use a source known to be rife with errors, would make no effort to validate its accuracy, wouldn\’t tell me how much weight it was given, and wouldn\’t even define the terms they used.
Regardless of the mathematical correlation – which is undeniable – if insurers act in a stupid fashion, then there will be legislation.
David is right when he said: Insurers got lazy, dropped insurance training programs, forgot underwriting, became \”bookies\” and when they chose to talk down to the public on credit scoring, their own problems became the public\’s fault. This may be a trial by media, but in their quest for market share, the companies forgot HOW to underwrite.
Insurance Scoring IS a good indicator. I was speeding to the mail box the other day with my LATE credit card payment and I ran a stop sign and was in an accident. I think this type of stuff happens all the time to people who are late with bills. This is exactly what the insurance companies are talking about. This is proof.
The same medical bill that has been passed to a collection agency, then to another, then to another showing 4 collection accounts DOES count. The computer reads \’collection account\’ and that\’s all. The initial medical facility is the only thing that doesn\’t count. Even after the insurance finally pays it, the three that held it in the middle don\’t bother to remove it.
You see you are all correct!
THAT\’S THE PROBLEM WITH CREDIT SCORING AS A SYSTEM!
Someone mention of frivilous claims. The people who put in the most claims are usually the wealthiest and their deductibles are set low.
There was a day in age when a door ding or bent bumper meant nothing and one paid for the repair out of pocket. Those claims are some of the most frequent.
Now you want to lower premiums get rid of kick backs and million dollar bonus\’ to high ranking officers then maybe there wouldn\’t be such a need to increase premiums to cover the legitimate losses.
The say credit scoring doesnt disproportioniaty hurt the poor – But ID like to know, what is the average credit score of someone who makes less than $20,000. I never hear that refferenced, but its important, isnt it?
You damn right it is! We people have to struggle and sometimes work 2 jobs just to pay premiums to have transportation to get to and from work!
Visit MSN money and type in any insurance company symbol perform a search then lok for insider trading. THAT will tell you how poor underwriting and Ins. Co are doing
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FYI, Medical bills are not factored into insurance score
Once again those who have the most(Insurance companies and Underwriters) pray on the ones with the least by using the credit score method.
Why not enact a premium system that charges premiums by one\’s ability to pay let\’s say eemmm by income!
That would work for most I\’m sure.
Yeah that makes sence. NOT! Charge the people who are in a position that they have to turn in any claim that comes their way less then the ones that ussually will not worry about it. See that is what the insurance score has done for insurers to predict the severity of claims that are turned in to the companies. If we loose the ability to have a predictor we will fall back to what happend 5-8 years ago when the insurance companies were loosing money on fire insurance and then you can just watch the premiums on homeowners go out the roof. I don\’t think anyone likes paying more for insurance no matter if they have money or not but why not try to keep the rates down as low as we can for everyone.
I\’m an industry insider and never thought I would object to credit scoring – until I had a problem with it, related solely to taking out college student loans for my kids.
My credit report contained numerous errors. Although these reports are known to have a high risk of error, the insurers I dealt with admitted that they did absolutely nothing to validate the information. Gee, how do they handle claims? Further, they would not disclose how credit scoring was factored, although it obvious had more weight than a FIVE YEAR CLAIM FREE experience with me. One notice cricized \”too many finance companies\” – so I asked, how many are \”too many\” – one, two, five? No answer – \”proprietary\”, I was told.
Basically, what I was told was they would use a source known to be rife with errors, would make no effort to validate its accuracy, wouldn\’t tell me how much weight it was given, and wouldn\’t even define the terms they used.
Regardless of the mathematical correlation – which is undeniable – if insurers act in a stupid fashion, then there will be legislation.
David is right when he said: Insurers got lazy, dropped insurance training programs, forgot underwriting, became \”bookies\” and when they chose to talk down to the public on credit scoring, their own problems became the public\’s fault. This may be a trial by media, but in their quest for market share, the companies forgot HOW to underwrite.
Insurance Scoring IS a good indicator. I was speeding to the mail box the other day with my LATE credit card payment and I ran a stop sign and was in an accident. I think this type of stuff happens all the time to people who are late with bills. This is exactly what the insurance companies are talking about. This is proof.
The same medical bill that has been passed to a collection agency, then to another, then to another showing 4 collection accounts DOES count. The computer reads \’collection account\’ and that\’s all. The initial medical facility is the only thing that doesn\’t count. Even after the insurance finally pays it, the three that held it in the middle don\’t bother to remove it.
You see you are all correct!
THAT\’S THE PROBLEM WITH CREDIT SCORING AS A SYSTEM!
Someone mention of frivilous claims. The people who put in the most claims are usually the wealthiest and their deductibles are set low.
There was a day in age when a door ding or bent bumper meant nothing and one paid for the repair out of pocket. Those claims are some of the most frequent.
Now you want to lower premiums get rid of kick backs and million dollar bonus\’ to high ranking officers then maybe there wouldn\’t be such a need to increase premiums to cover the legitimate losses.
The say credit scoring doesnt disproportioniaty hurt the poor – But ID like to know, what is the average credit score of someone who makes less than $20,000. I never hear that refferenced, but its important, isnt it?
You damn right it is! We people have to struggle and sometimes work 2 jobs just to pay premiums to have transportation to get to and from work!
Visit MSN money and type in any insurance company symbol perform a search then lok for insider trading. THAT will tell you how poor underwriting and Ins. Co are doing