Insurance Scores Provide More Data…
Credit information provides insurers with additional predictive information that is distinct from other rating variables. By combining this information with other familiar rating factors used for homeowners and auto insurance, insurers are able to develop a more complete picture of an individual’s risk of loss.
Insurance Scores Make Insurance Pricing More Accurate and Individualized…
Credit information significantly improves insurers’ ability to make accurate predictions on which consumers are most likely to experience a claim. By including credit information in the insurance pricing formula, premiums more accurately reflect the risk of the individual rather than a larger group.
As a result, low risk consumers with better credit scores pay less for insurance.
