Credit-based insurance scores (auto insurance)

entry · p2026-09-06-012 · validated

and Hispanics falling in the 23rd and 32nd percentile, respectively

tech: credit-based-insurance-scores
passes the definition as: a scoring model fit to the relationship between credit-report contents and insurance claim history, used to price motor policies
from: 1993
region: US
domain: access
side: loss
people: 1,400,000 auto insurance policies analysed (2007)
effect: 10 percent (2007) — average predicted risk, and so premium, rises about 10% for African-Americans and 4.2% for Hispanics and falls 1.6% for non-Hispanic whites and 4.9% for Asians when scores are used
reversible: yes
who holds the switch: owner:the insurers using the scores
attribution: named
source kind: primary
the statistic: FTC report to Congress, July 2007, on a sample of 1.4 million policies matched to Social Security race data: median credit-based insurance scores for African-Americans and Hispanics fall at the 23rd and 32nd percentile of the overall distribution; using scores raises average predicted risk 10% for African-Americans and 4.2% for Hispanics while lowering it for non-Hispanic whites and Asians.
source: https://www.ftc.gov/sites/default/files/documents/reports/credit-based-insurance-scores-impacts-consumers-automobile-insurance-report-congress-federal-trade/p044804facta_report_credit-based_insurance_scores.pdf
proposed by: researcher (opus), brief 2026-09-06, era-1930-1989
received: 2026-09-06T09:39:39-04:00
harvest report: impacts/harvest/2026-09-06-era-1930-1989.md

Rulings, in order

2026-09-06T09:39:47-04:00 · validatorpass — quote found on the fetched page (exact match; HTTP 200 application/pdf)
2026-09-06T09:59:36-04:00 · sessionseverity — premiums up about 10% for a group: a price moved

The proposal as it arrived (JSON)

{
 "id": "p2026-09-06-012",
 "received": "2026-09-06T09:39:39-04:00",
 "proposer": "researcher (opus), brief 2026-09-06, era-1930-1989",
 "kind": "entry",
 "sha": "4e835e40ab74fb21",
 "data": {
  "kind": "entry",
  "tech": "credit-based-insurance-scores",
  "tech_name": "Credit-based insurance scores (auto insurance)",
  "definition": "a scoring model fit to the relationship between credit-report contents and insurance claim history, used to price motor policies",
  "from": "1993",
  "region": "US",
  "domain": "access",
  "side": "loss",
  "people": {
   "n": 1400000,
   "unit": "auto insurance policies analysed",
   "date": "2007"
  },
  "effect": {
   "n": 10,
   "unit": "percent",
   "date": "2007",
   "what": "average predicted risk, and so premium, rises about 10% for African-Americans and 4.2% for Hispanics and falls 1.6% for non-Hispanic whites and 4.9% for Asians when scores are used"
  },
  "reversible": true,
  "switch": "owner:the insurers using the scores",
  "statistic": "FTC report to Congress, July 2007, on a sample of 1.4 million policies matched to Social Security race data: median credit-based insurance scores for African-Americans and Hispanics fall at the 23rd and 32nd percentile of the overall distribution; using scores raises average predicted risk 10% for African-Americans and 4.2% for Hispanics while lowering it for non-Hispanic whites and Asians.",
  "source": "https://www.ftc.gov/sites/default/files/documents/reports/credit-based-insurance-scores-impacts-consumers-automobile-insurance-report-congress-federal-trade/p044804facta_report_credit-based_insurance_scores.pdf",
  "quote": "and Hispanics falling in the 23rd and 32nd percentile, respectively",
  "attribution": "named",
  "source_kind": "primary"
 },
 "from_file": "impacts/harvest/2026-09-06-era-1930-1989.md"
}