Tag: price optimization

Missouri officials ban insurance industry from using price optimization

Nordstrom
Missouri insurance industry

Department of Insurance bans the use of controversial price optimization practice The Missouri Department of Insurance has officially banned the use of price optimization among insurance providers. Insurance Commissioner John Huff has issued a warning to insurers using this pricing method that they will be faced with severe penalties if they continue to do so. This decision affects the insurance industry in the state, applying to a variety of companies, especially property and casualty insurance companies. Price optimization continues to cause problems for the insurance industry Price optimization has become…

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Connecticut aims to put price optimization to rest among homeowners insurance companies

S.Vagus
Connecticut liability insurance

Homeowners insurance sector is attracting controversy due to the use of price optimization The Connecticut Department of Insurance has begun warning insurance companies against using a controversial pricing method that relies heavily on consumer buying habits. The insurance industry is meant to use actuarial or risk-based principles to price the coverage being provided, but many insurers have been found to be using price optimization, which could be placing consumers under a great degree of financial stress. Such practices have been found in various sectors of the insurance industry and more…

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State commissioner sends a warning to the insurance industry

Logan B.
seattle washington health insurance rates industry

Insurers practicing price optimization could be running afoul of state law Washington Insurance Commissioner Mike Kreidler has issued a warning to insurance companies concerning using the personal data of customers to price coverage. In a “Technical Assistance Advisory” notice sent to property and casualty insurers operating in the state, the commissioner suggested that the practice of “price optimization” is illegal throughout Washington. Price optimization is the process of using non-insurance data, as well as other information, in order to affect the cost of insurance coverage. Price optimization may be having…

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Consumer group may have uncovered an auto insurance pricing scheme

S.Vagus
car auto insurance

Advocacy groups claims to have found information regarding a pricing scheme within the auto insurance sector The Consumer Federation of America, a prominent consumer advocacy group, has raised the alarm on what it believes to be a pricing scheme in the auto insurance sector. The organization suggests that insurers are employing a practice called “price optimization” to drive up insurance premiums for drivers. The Consumer Federation of America claims to have uncovered this practice when investigating rate filings from some of the country’s largest auto insurance companies. Insurers may be…

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