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Insurance-industry groups get behind credit-based scoring

The APCIA has taken legal action against Washington state, and the NAMIC may not be far behind.

The American Property Casualty Insurance Association (APCIA) says that credit-based insurance scores are an "important risk-based rating tool that has been in place for nearly 20 years for the benefit of consumers." (apichon_tee/Adobe Stock) The American Property Casualty Insurance Association (APCIA) says that credit-based insurance scores are an “important risk-based rating tool that has been in place for nearly 20 years for the benefit of consumers.” (apichon_tee/Adobe Stock)

Credit-based scoring drew scrutiny recently when Washington State Insurance Commissioner Mike Kreidler issued an emergency order prohibiting insurers from relying on this practice to set personal insurance policy rates.

Kreidler said the step was necessary “to prevent discriminatory pricing in auto, renters and homeowner insurance in anticipation of the end of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will expire 120 days after President Joe Biden declares an end to the national coronavirus emergency.

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Elana Ashanti Jefferson

Elana Ashanti Jefferson

Executive Editor Elana Ashanti Jefferson is a veteran journalist and communications professional. She can be reached by sending email to [email protected]

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