Insurance industry representatives regularly cite the Federal Trade Commission's study on insurance scoring as evidence that credit information is an accurate predictor of risk. The study's findings state clearly that this is the case.
However, regarding whether insurance scores adversely impact minorities and the poor, the FTC study is a bit less clear, depending on which side you talk to.
"Credit-based insurance scores are distributed differently among racial and ethnic groups, and this difference is likely to have an effect on the insurance premiums that these groups pay, on average," the study states, while noting that African-Americans and Hispanics "are substantially overrepresented among consumers with the lowest scores."
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