Auto Insurance Rates Increasing?
Posted on Feb 22, 2018 in Insurance Developments and Trends | Comments Off on Auto Insurance Rates Increasing?
According to insurance shopping website The Zebra, auto insurance rates have increased significantly in recent years – by 20% since 2011. According to the Insurance Information Institute, rates have risen 15% in the past two years, during which time insurance company profits have declined. Some of these increases are likely due to weather events, such as the several hurricanes in 2016....
D.C. Department of Insurance to Hold Public Hearing on Insurance Premiums
Posted on Jan 24, 2018 in Insurance Developments and Trends, Insurance Regulation, Technology Impacting Auto Insurance | Comments Off on 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
Posted on Feb 7, 2017 in Insurance Regulation | Comments Off on 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
Posted on Jul 25, 2016 in Insurance Developments and Trends | Comments Off on 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
Posted on Jan 27, 2016 in Insurance Regulation | Comments Off on 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...
