Pricing Car Insurance Based on Occupations
Posted on Nov 21, 2016 in Insurance Regulation | Comments Off on Pricing Car Insurance Based on Occupations
The New York Department of Financial Services (DFS) has recently requested information from some insurers about how they relate a customer’s education and occupation to driving, risk, and auto insurance pricing. Actuaries may use information about occupations to price data, and people with jobs that are associated with higher risk may pay more for their insurance. The DFS is considering whether to prohibit the use of occupation and education in pricing auto insurance. Some states, like Massachusetts, already prohibit the use of those factors to set insurance premiums, and other states limit the role that occupation can play in ratemaking.
