A friend of mine says there are no good or bad pets, only good or bad pet owners. The same can be said of technology toolsinherently theyre neither good nor bad. It depends on what people do with them.

For example, advocates of insurance scoring say insurers that use it are good technology ownersthe computerization of credit data, they assert, allows insurers to underwrite and price more accurately and offer lower premiums to customers with good credit (for more, see Where Credit Is Due, p. 16). Critics claim the practice is discriminatory and unfair.

A May credit-scoring report from the Insurance Information Institute (III) provides an overview of research and state and federal actions. Included in the research: In Texas, a study found a strong relationship between credit scores and claims experience. . . . Although there was a consistent pattern of differences in credit scores among different racial/ethnic groups, with blacks and Hispanics having worse scores than whites and Asians on [average, the study] found the results were actuarially supported and not unfairly discriminatory. On the other hand, the III points to flawed methodologies for a Missouri Department of Insurance claim that low-income households and minorities are adversely affected by insurance scoring.