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Price Optimization: The New Credit Scoring Controversy?
Consumer groups and some sate lawmakers and regulators have been asking questions about the use of price optimization by insurers. With price optimization, an insurance premium can be affected by a buyer’s propensity to shop, whether the buyer is one who is likely to need a discount before buying, or whether the buyer doesn't care. Therefore someone gets a discount, and maybe someone else doesn't. Andy Simpson asked Bob Rusbuldt, president and CEO of the Independent Insurance Agents and Brokers of America, whether price optimization has come across agents’ radar yet.