Credit Scoring: Why Is it an Important Tool for Insurance Carriers?
Everywhere we go, we are told to guard our Social Security number, and our clients are taking that advice to heart. Unfortunately, when it comes to insurance scoring, providing a social security number is in your client’s best interest.
Social Security numbers provides detailed reports about credit history and criminal background. Without this information, carriers could assume the worst and your client could be penalized with higher premiums. Many reports can be obtained without your client’s Social Security number, but they may not be accurate.
Without this information, carriers could assume the worst and your client could be penalized with higher premiums.
For more information, the following two documents have been provided to consumers by the Wisconsin Office of the Commissioner of Insurance:
Understanding How Insurance Companies Use Credit Information
https://oci.wi.gov/Documents/Consumers/PI-204.pdf
The Use of Credit Information in the Underwriting Process for Auto and Homeowner’s Insurance:
https://oci.wi.gov/Documents/Consumers/MRCreduse.pdf
So, in short, when gathering information about your client, don’t forget to ask them for their Social Security numbers, as well as obtain full answers to all underwriting questions. Without complete information, the client may not be getting the full benefits of insuring with you!
**These statements may or may not apply in the state in which you do business.
