Released on: August 26, 2008, 7:51 pm

Press Release Author: Don Francis

Industry: Financial

Press Release Summary: Despite plenty of evidence showing its benefits, credit-based
insurance scoringis still under attack. So an American Insurance Association (AIA)
executive vicepresident has penned an article in its defense

Press Release Body: Despite this report, credit-based insurance scoring still has
its detractors.

In her article, Ballen tackles some of the assertions that have been made overthe
past year, many of which are "based on misunderstanding regarding theequity and
efficacy of this proven risk-assessment tool," she writes.

The most controversial area of the report is the issue of the proxyeffect. Opponents
of credit-based insurance scoring contend that the use ofsuch models leads to an
increase in insurance rates for members of certainminority groups. Ballen points out
that the results of the analysis conducted bythe FTC left room for only a one
percent proxy effect for race or ethnicity.Furthermore, experts who have examined
the report say this is most likely aresult of an error in data analysis or
methodology.


Web Site:
http://compare-ins-usa.blogspot.com/2008/08/top-insurance-industry-executive-backs.html


Contact Details: 20707, LAUREL, MARYLAND, USA