When liberals go too far...

[dandarc]

Possibly a cash grab in the short term. Underwriting profit should get competed down to zero in the long term. So long as barriers to entry are not excessive.

[seattlecyclone]

Insurance is a very heavily-regulated industry. Just as the state insurance commissioner has the power to stop insurance companies from using credit scores in underwriting, he also has the power to reject rate increases that result in significant increases in insurance company profit.

[dang1]

That's crazy.     Newsom has signed a new bill to increase the penalties for organized shoplifting.   But now that this has started, it's going to be hard to turn around.

Gotta talk to the kids about not moving to California.   Jeeze.

too many people in California already. Actually, more people should move out of California

[Mr. Green]

Possibly a cash grab in the short term. Underwriting profit should get competed down to zero in the long term. So long as barriers to entry are not excessive.

An emergency, three year period sounds like the perfect length of time for all insurance companies to decide not to compete to zero and simply make extra profits. Classic capitalism.

[dandarc]

Possibly a cash grab in the short term. Underwriting profit should get competed down to zero in the long term. So long as barriers to entry are not excessive.

An emergency, three year period sounds like the perfect length of time for all insurance companies to decide not to compete to zero and simply make extra profits. Classic capitalism.

Eh, I'd bet somebody will undercut -  3 years is a long time in business. Plus you've got seattleclone's point - I worked for an insurance company 15 years ago that temporarily stopped writing insurance in Florida over a spat with the regulator's opinion as to what a reasonable rate would be. The whole state was deemed "not worth it" at least for homeowners' insurance. Appears that they are writing here again, but only through a subsidiary, which presumably shelters "rest of large insurance company" to an extent from another 2005 hurricane season.

A state that can pass a law like this one about credit scores surely already has a strong insurance regulation office ready to watch for this sort of collusion.

[Samuel]

There are poor people with good credit whose car insurance just went up too.

These folks beat the odds. Actuarial science is all about odds. Odds are, if you're poor you're going to have a harder time keeping ahead of your bills than someone who is rich. Do counterexamples exist? Sure! But on a population level, removing credit scores from insurance underwriting is going to benefit more poor people than it harms.

There are also two questions here.

Does this policy, if executed as expected, benefit poor people? All signs point to yes.
Are the insurance companies actually dropping premiums for those poor people? I would be VERY curious to see if in actuality the insurance company used this for anything other than a cash grab.

I read somewhere that the insurance companies cannot take in more profits from this change so basically they're converting that particular variable to an average of all their policy holders, and then adjusting premiums to rebalance everything. The impact to your individual policy has to do with the distance of your credit score from the average of all your fellow policyholders.

I'm overdue to shop around so I guess I'll know soon if I can find better rates than with my current company. Where are the excellent credit/excellent driving record people getting their insurance these days?

[Metalcat]

There are poor people with good credit whose car insurance just went up too.

These folks beat the odds. Actuarial science is all about odds. Odds are, if you're poor you're going to have a harder time keeping ahead of your bills than someone who is rich. Do counterexamples exist? Sure! But on a population level, removing credit scores from insurance underwriting is going to benefit more poor people than it harms.

There are also two questions here.

Does this policy, if executed as expected, benefit poor people? All signs point to yes.
Are the insurance companies actually dropping premiums for those poor people? I would be VERY curious to see if in actuality the insurance company used this for anything other than a cash grab.

I read somewhere that the insurance companies cannot take in more profits from this change so basically they're converting that particular variable to an average of all their policy holders, and then adjusting premiums to rebalance everything. The impact to your individual policy has to do with the distance of your credit score from the average of all your fellow policyholders.

I'm overdue to shop around so I guess I'll know soon if I can find better rates than with my current company. Where are the excellent credit/excellent driving record people getting their insurance these days?

Good to know.

I can't answer your question though because I'm not in the US.

[Tyler durden]

Outdoor mask mandates because science she cares.

https://mailchi.mp/oregon/news-releasegovernor-kate-brown-announces-statewide-outdoor-mask-requirements?e=e6ce307a16