4 minute read
Readers respond to
perspectives
canadianunderwriter.ca l company/canadian-underwriter l @CdnUnderwriter l canadianunderwriter
Regulator allows Co-operators to use credit score for rating auto
February 9 The story: Co-operators General Insurance Company has received approval from Nova Scotia’s auto insurance regulator to use credit scoring as a rating factor to help price auto rates for private passenger vehicles. Harry says:
Another intrusion into the privacy rights of people. At a certain point, these insurers will amend their underwriting practices to refuse coverage to any applicant or existing client who will not consent to the release of their credit information.
Frank says:
What’s missing while working from home
January 26 The story: Employees may be missing out on mentoring opportunities for career development in the current remote working environment, P&C leaders say.
Credit scoring penalizes lower income people or people who have gone through economic trauma such as divorce, bankruptcies, consumer proposals, etc., with higher insurance rates. Since when were discriminatory practices okay? What’s next? Actuaries can find a numerical correlation to support anything. Will hair colour be used next? Scott says: Joyce Poon says:
Not the same kind of service we can provide to customers. I don’t like working from home at all. Only homemakers can work from home.
I strongly agree with this statement. So many things in the world cause people with less money to pay more. The whole goal of the insurance industry is to share the risk of loss over a large group of people so we can help each other out. This burdens poor people with more of the premium. I’m not saying it’s not statistically valid, but I am saying it’s possibly immoral. Also, you have to remember that because of other structural problems in Canada, people are more likely to have less money if they are Black, Indigenous, or if they have mental health issues, addictions, disabilities, etc. I don’t think regulators should be allowing us to use credit scores for anything we don’t have to, especially in the case of auto insurance, which is legally mandatory to buy. Stephen B says:
I am not surprised IBC allows such practices. Insurance companies want a subjective moral hazard to play to a rating factor, this time a credit score. “Actuarial” correlation of income level to claims frequency is more like status profiling and, hence, discriminatory. Provincial governments must intervene and stop such practices.
Telematics surcharges arrive for Ontario auto
February 5 The story: Ontario motorists who choose usage-based insurance could now be hit with surcharges if telematics data shows they have risky driving behaviour after FSRA removed its UBI Guidance. Danni says:
Seems inevitable that they would proceed this route, but agreed. I still do not trust UBI, even with the discounts that the companies tout. Fair game if someone agrees to use UBI and happens to be a terrible, risky driver. Then this seems appropriate. Scott says:
It sure was predictable. Allowing insurers the thin end of the wedge always means they will push for more. The other article says credit scoring for auto is being permitted in one of the provinces now. Next goal is to remove your right to choose UBI. Either through policy or abhorrent pricing, true choice will be stripped away.
Miss the office commute? This is why you should
January 21 The story: Many P&C industry professionals don’t miss the daily commute these days, but researchers are saying this time provides valuable benefits to workers.
Pat Murphy says:
Sometimes, that commute home is valuable time to “turn off” the “employee” and bolster the “mama/ partner/volunteer/caregiver” role that you need to play when you arrive back at your starting point. Moving from one room to another just isn’t the same to some.
All pros
kamran afshar, cip
Manager, Commercial Lines Auto
The Chartered Insurance Professional (CIP) designation has been proudly earned by more than 18,000 dedicated professionals in the insurance industry. CIPs like Kamran take their training and education seriously, adhere to a strict code of conduct and are focused on the highest levels of service.
Take your professionalism to a higher level. Get your CIP through the Insurance Institute to enhance your skills and serve your clients better today and in the future.
