Is Big Data Causing Insurance Actuaries to Move Away from Using Credit Scores?

Posted Leave a commentPosted in Analytics, Big Data, big data helps insurance industry, Predictive Analytics

Insurance companies have literally spent decades fine-tuning their actuarial models. In the 1990s, they began using credit scores to assess the risks of customers and set premiums accordingly. Laws permitting credit score use with insurance companies vary from state to state. However, around 95% of auto insurance companies use credit scores in their actuarial algorithms. […]