"The growing use of credit-based insurance scores affects millions of consumers. We look forward to hearing from a range of perspectives including state insurance regulators, consumer advocacy groups and industry on this important issue," Watt said.
The FTC’s Report has generated a great deal of controversy since its release with its detractors claiming that the way in which the data was compiled is meaningless, and that using credit scores in underwriting auto insurance is biased. Supporters of the report’s findings claim that credit scores will help insurance pricing better reflect an individual’s risk profile.
The hearing will review a Federal Trade Commission (FTC) report to Congress entitled, "Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance" and examine its key findings. It will also study the efforts underway by the states to regulate the use of credit-based insurance scores.