PCI was chosen to testify because of the role the association plays in the property casualty industry. In his testimony, Neeson highlighted the strong correlation between credit information and loss data. Credit-based insurance scores help insurers to more accurately price and actually write more policies.
When insurers are able to properly underwrite risks, consumers benefit with lower rates and more choices. Because credit-based insurance scoring is an objective and accurate method for assessing the likelihood of insurance loss, we strongly oppose passage of H.R. 5633 or H.R. 6062. These bills would amend the Fair Credit Reporting Act (FCRA) to prohibit the use of consumer information in connection with the underwriting or rating of personal lines of insurance.
These bills could lead to premium increases for many consumers by depriving insurers of one of the most predictive underwriting tools at their disposal.
In the states this year, legislation to ban the use of credit has been introduced in the following 16 states: Arizona, Colorado, Connecticut, Kansas, Kentucky, Maryland, Michigan, Mississippi, Nebraska, New Jersey, Oklahoma, Tennessee, Washington, West Virginia, Wisconsin and Wyoming. As many state legislatures begin to adjourn, no state has enacted a ban this year.