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Those poor insurance companies..In Canada this time

by JP Bill / March 30, 2010 11:16 PM PDT

Perhaps they're doing it in US also...don't know.

Insurance: Consumer advocate sounds alarm over increasing rates for province's homeowners

He said much of the upward movement on home insurance has to do with the use of credit scoring by some insurers who use credit history as a means of evaluating the risk of existing and potential customers.

Although the New Brunswick government has introduced legislation that would ban the use of credit scores in all insurance underwriting, the legislation has not yet passed and there is pressure for it to be reconsidered.

Godin said his office has heard from many people who have seen increases of as much as 100 per cent in their home insurance premiums or who have simply been dropped by their insurers because of poor credit ratings.


Where you live, distance from a firehall, age of the house, I can see all these affecting the cost of home insurance.

But your credit rating?

When I receive my statement for insurance cost, they don't send the policy UNTIL I pay. My credit rating is good as far as I know

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It would be my guess.....
by C1ay / March 31, 2010 1:46 AM PDT

that an actuary could show statistically that homeowners with lower credit ratings are more likely to exploit their insurance carrier through extraneous claims than those with better credit. Not that any particular individual is or is not. For insurance companies is strictly a game of statistics and if the odds of one group having more risk(potential cost) than another are higher they charge them more.

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We in Ontario went through a period where 20% increases each
by Ziks511 / March 31, 2010 11:33 AM PDT

year in the auto insurance market despite record profits every year (any of this sound kind of familiar?). Finally the Provincial Government had to step in and introduce "No fault" insurance for those who couldn't afford insurance. Suddenly the insurance companies shut up, the rates started to drop, and the whole think made a noise like a hoop and rolled away. Sometimes I think that American companies try things out in Canada before they try it out in the states, though obviously not health care, they were decades too late for that.

Rob

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Here's what they did in NB 6 years ago and.
by JP Bill / March 31, 2010 11:52 AM PDT
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