What is an Insurance Bureau Score?

An Insurance Bureau Score is similar to a credit score; it is a snapshot of a consumer's insurance risk picture at a particular point in time, the credit score is one of the factors. Insurers must comply with the Fair Credit Reporting Act of 1970 (and subsequent amendments). Scoring models have been shown to be extremely reliable and fair. Depending on the company and state, they exclude gender, race, income, location, net worth, marital status and age; they include credit information, public records, driving records etc. Insurers use Insurance Bureau Scores along with application information to evaluate new and renewal auto and homeowners insurance policies. It helps them determine whether issuance or renewal of a policy will expose them to losses in excess of collected premiums. Insurance Bureau Scores are not based solely on information in consumer credit reports, however, since scores are dynamic, and change as new information is added to a consumer's credit report. Insurance ...  more