The issue is that the underlying factors are not readily apparent (or known) based on credit scoring to cause the “correllation to loss”. Number of miles driven, years of experience, citation history all tend to be self evident but having a few to many revolving accounts? The mechanism is not understood hence the feeling is that it is not applied correctly and perhaps unfairly. If the carriers believed the drivel they put out on credit scoring why is it on a family basis rather than individually? Why do they exempt good credit scores from getting huge increases when their credit scores drop for what ever reason? Why the battle to the death on this issue: cost. Underwriting staffs have been gutted and with a credit score and MVR the policy issuance is truly automatic. No thinking or experience needed and no wages to pay! The real cost will not be to the consumers (come on what did they do before Fair/Isaac came up with this scam: they seemed to know how to select the perferred drivers and discount plans) but to company overhead! By the way a study (as I recall) once showed a direct correlation to loss based on hair color; being somewhat follically challenged I could be out on a limb here but why not use that too; it seems as statistically vailid as credit scoring!
Ladies and Gentlemen, as I stated earlier and with all due respect, I am a 27 year insurance agent, with the largest P&C carrier in Texas and the U.S. My clients depend on my experience and expertise to stand up for their rights, offer good insurance policies at good prices, service claims, develop lasting friendships and business relationships for generations to come or as long as I am their insurance agent. The P&C insurance industry made $393 Billion profit in 2003-04. The reinsurance industry is very healthy. Check the National Association of Insurance
Commissioners (NAIC) website to see how YOUR carrier profited last year, and years before and ask the question again, “Is credit scoring necessary?”. I suggest to you,check the reinsurance market in Bermuda, and see how much YOUR insurance company profits there, FREE from some FEDERAL TAXES.
Bob, Thanks for the advice. By the way, I do have the identity theft protection provided with my homeowners insurance. But the misconception is that it restores your credit. It does not. It simply provides a little money to clean it up yourself. What do the people who do not have homeowners insurance do? The truth is that it does not matter whether you work hard to keep your credit clean. Your identity can and most likely will be stolen some day. Chances are, if your carrier pulled a Choicepoint report on you, it may have already been stolen. When it happens to you, we will see if you sing another tune.
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The issue is that the underlying factors are not readily apparent (or known) based on credit scoring to cause the “correllation to loss”. Number of miles driven, years of experience, citation history all tend to be self evident but having a few to many revolving accounts? The mechanism is not understood hence the feeling is that it is not applied correctly and perhaps unfairly. If the carriers believed the drivel they put out on credit scoring why is it on a family basis rather than individually? Why do they exempt good credit scores from getting huge increases when their credit scores drop for what ever reason? Why the battle to the death on this issue: cost. Underwriting staffs have been gutted and with a credit score and MVR the policy issuance is truly automatic. No thinking or experience needed and no wages to pay! The real cost will not be to the consumers (come on what did they do before Fair/Isaac came up with this scam: they seemed to know how to select the perferred drivers and discount plans) but to company overhead! By the way a study (as I recall) once showed a direct correlation to loss based on hair color; being somewhat follically challenged I could be out on a limb here but why not use that too; it seems as statistically vailid as credit scoring!
Ladies and Gentlemen, as I stated earlier and with all due respect, I am a 27 year insurance agent, with the largest P&C carrier in Texas and the U.S. My clients depend on my experience and expertise to stand up for their rights, offer good insurance policies at good prices, service claims, develop lasting friendships and business relationships for generations to come or as long as I am their insurance agent. The P&C insurance industry made $393 Billion profit in 2003-04. The reinsurance industry is very healthy. Check the National Association of Insurance
Commissioners (NAIC) website to see how YOUR carrier profited last year, and years before and ask the question again, “Is credit scoring necessary?”. I suggest to you,check the reinsurance market in Bermuda, and see how much YOUR insurance company profits there, FREE from some FEDERAL TAXES.
Bob, Thanks for the advice. By the way, I do have the identity theft protection provided with my homeowners insurance. But the misconception is that it restores your credit. It does not. It simply provides a little money to clean it up yourself. What do the people who do not have homeowners insurance do? The truth is that it does not matter whether you work hard to keep your credit clean. Your identity can and most likely will be stolen some day. Chances are, if your carrier pulled a Choicepoint report on you, it may have already been stolen. When it happens to you, we will see if you sing another tune.
Bob, if this doesn’t provide the visual you need I give up.
http://www.msnbc.msn.com/id/7027482/
God Bless you too Bob.