It is one thing for a bunch of consumer groups to bash a Federal Trade Commission report giving insurers some support for their use of credit scoring when underwriting auto policies, but it's quite another when there is dissension within the FTC itself. At this point, you have to wonder what credibility the report has left.

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Our own Dave Postal reported that Commissioner Pamela Jones Harbour has issues with the study's methodology, expressing doubts about “the reliability of any conclusions the report might draw.

Ms. Harbour said the data collection and analysis fell short of the FTCs gold standard for rigor and completeness, and did not reflect the agencys best practices, and that better alternatives were available and should have been utilized.

Had this report been based on the real insurance marketplaceusing actual, verifiable data on individual policyholders, from a broad cross-section of insurance companiesreliable answers might have emerged, she concluded.

In the end, she said she couldnt endorse the report due to my grave methodological concerns. This study fell short of the rigorous research and data-collection standards to which the Commission usually adheres.

The majority voting in favor of the report rallied to defend the study, but their words sounded hollow, and coming on top of the fierce counterattack by consumer groups, Ms. Harbour's frank denunciation from within the FTC is devastating.

This all may be much ado about nothing in the short term, as I doubt Uncle Sam will take a definitive stand one way or the other until control of Washington is secured by Democrats. If the Dems retake the White House and substantially boost their voting margin in Congress, all bets are off–not only for credit scoring, but McCarran-Ferguson and other issues dear to the heart of the industry as well.

What do you folks think???

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