Search
 
Commentary

Is Credit Scoring Ethical?

For NU's next column on "A Question of Ethics," we'll focus on the use of credit history to help insurers underwrite auto and homeowners policies. ...

By Staff Writer | Updated on May 04, 2007

For NU’s next column on “A Question of Ethics,” we’ll focus on the use of credit history to help insurers underwrite auto and homeowners policies. Credit scoring has generated tremendous controversy and put the industry on the hot seat. Is it ethical to force an unpopular rating factor on the public–particularly if critics contest the accuracy of the information, and question the disparate impact its use might have on low-income and minority groups? And what are the ethical demands made on agents and carriers in explaining the use of this factor as a rating criterion? Please file your comments here on my blog. (If you prefer to remain anonymous, that’s fine–just leave your name off…But please tell me what you do in the industry–whether you are an agent, underwriter, claims, etc.)

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.