AKA My and the Insurance/Banking industry’s simultaneous biggest problem and opportunity
AKA What #insurtech should be trying to solve but outside of me and maybe some people I have not found yet, is not.
Really it is two paragraphs. One that comes from a standard document that you’ll find in your policy forms. Yes, I know you likely do not read them. Also, the version in your state may be different. The other is a direct quote via an email. I see or hear variations of the second one every week. So here goes;
In connection with this insurance, we previously used a credit report or obtained or used a credit based insurance score based on information contained in that report. We may obtain or use credit information again provided, however, that upon renewal such information may only be used to reduce premiums. An insurance score uses information from your credit report to help predict how often you are likely to file claims and how expensive those claims will be. Typical items from a credit report that could affect a score include, but are not limited to, the following; payment history, number of revolving accounts number of new accounts, the presence of collection accounts,bankruptcies, and foreclosures. The information used ot develop the insurance sore comes from Transunion. If you have any questions about the use of credit information in insurance underwriting, you can contact us at 1-800-***-**** or write us at p.o. box______________ or via fax at 877-***-****, When you write us, please include your name and policy number.
An aside that is sort of related; A long ways back it was a Monday afternoon and a coach was giving us JV’ers a pep talk. During this we watched the other team line up and he pointed out a couple of very large people. He was very quick to point out, if they are so big and bad why are they playing on JV? Yup, simple, profound and very logical.
I think of this after just about every article, white paper or study I read. If the people writing or being quoted know so much about how insurance is bought and sold, maybe they should start their own insurance brokerage or go to work for a broker or company? The reality is things might accelerate if they did.
ONE HUNDRED MILLION or more people will benefit from these changes, would you like to help me?