Texas Department of Insurance released results of a study correlating claim experience, ethnicity and credit scores of individual insureds under 2 million personal lines insurance policies.
While the report indicates a "strong relationship between credit scores and claims experience on an aggregate basis," that conclusion was based on a monovariant analysis. The Department has undertaken a multivariant analysis and expects results by January 31, 2005.
While the study found that a majority of insurers utilized credit scores in rating and underwriting, the impact on rates varies significantly among insurers.
The full report is available at: Report to 79th Legislature : Use of Credit Information by Insurers in Texas
Posted by dougsimpson at January 11, 2005 04:54 PM | TrackBack