Insurers have long claimed that Credit Scoring is an accurate indicator of future claims and incidents that may occur.  Actuaries and underwriters routinely examine multiple factors when determining insurance rates and Credit Scoring has recently become more controversial because of the nation’s economic crisis.  Many people that previously had a higher credit rating are seeing their credit ratings slip due to unemployment, foreclosure and other circumstances.  Several insurers are looking at ways to better calculate this risk during the economic crisis.  

The National Association of Insurance Commissioners will be reviewing credit scoring practices and will be conducting a public hearing to take testimony on the industry use of credit scores.

“In this challenging economy, it is essential that insurance regulators have the necessary tools to prevent collapsing credit markets from unfairly impacting consumers.” – Morris J. Chazez , New Mexico Insurance Superintendent

See the below article from Insurance Journal for further information.

Insurers Use of Credit Scores Faces Renewed Scrutiny by Regulators.