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D.C. Department of Insurance to Hold Public Hearing on Insurance Premiums

On January 30, 2018, the D.C. Department of Insurance, Securities, and Banking is expected to hold a public hearing to cover a variety of issues impacting private auto insurance, including topics like price optimization and the use of credit scores in underwriting. More broadly, the hearing is intended to examine the causes of recent increases in auto insurance premium rates in D.C.,...

Nevada Becomes Latest State to Address Price Optimization

Nevada’s insurance commissioner recently issued a bulletin relating to price optimization. The bulletin reminds property and casualty insurers that their underwriting and rating models must be filed with the division of insurance for approval. This includes models based on credit information or models using a mathematical algorithm. It also specifically includes “any ‘price...

Price Optimization: Courts Put Regulators in the Driver’s Seat

Earlier this year, courts in California addressed class actions brought by customers claiming to be harmed by their auto insurers’ use of price optimization and big data in setting auto insurance rates. In both cases, the court stayed the class action and deferred to the regulator under the primary jurisdiction doctrine. Because analysis of the insurer’s use of price optimization in...

Price Optimization Remains Key Focus of Regulators

2015 was an active year for price optimization among regulators, as nearly one-third of states issued guidance to P&C insurers on the practice.  (Within the last two months alone, Connecticut, Missouri, and Alaska have issued bulletins on price optimization.)  The National Association of Insurance Commissioners (NAIC) also approved a highly anticipated white paper on price...

Connecticut Issues Bulletin Banning Price Optimization

In a recent bulletin, Connecticut became the 16th jurisdiction to ban price optimization in insurance pricing. Connecticut Insurance Commissioner Katherine L. Wade stated that the Department “views price optimization as a discriminatory practice and therefore a violation of state insurance law.” Wade specifically cited factors such as a customer’s “propensity to shop for insurance or...

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