As you can see by the accompanying infographic, there is a widedivergence of opinion within the industry when it comes to theethics of using credit scores in underwriting coverage and settingprices--although two-thirds had no firm ethical stance on thecontroversy and were split on whether the tool should be used bycarriers.
The "Question of Ethics" posed to National Underwriter readerswas as follows: "Is it ethical to force an unpopular rating factorsuch as credit scoring onto the consuming public, particularly ifcritics contend the accuracy of the information used--as well asthe disparate impact it might have on low-income or minoritygroups--is in question?"
As to a secondary question of the ethical demands on agents andinsurers in explaining the use of credit rating criteria, uniformlythose responding believe attempts at explanations to date have beenpoor.
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