As you can see by the accompanying infographic, there is a wide divergence of opinion within the industry when it comes to the ethics of using credit scores in underwriting coverage and setting prices--although two-thirds had no firm ethical stance on the controversy and were split on whether the tool should be used by carriers.
The "Question of Ethics" posed to National Underwriter readers was as follows: "Is it ethical to force an unpopular rating factor such as credit scoring onto the consuming public, particularly if critics contend the accuracy of the information used--as well as the disparate impact it might have on low-income or minority groups--is in question?"
As to a secondary question of the ethical demands on agents and insurers in explaining the use of credit rating criteria, uniformly those responding believe attempts at explanations to date have been poor.
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