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Credit-based insurance premium scoring was a financial windfall for the insurance industry that justified raising insurance rates on people with low credit ratings. The industry acquired everyones credit ratings, did some data mining, and found some correlation; the lower the insureds credit rating, the higher the insurance claims.

When state Insurance Commissioner Mike Kreidler rightfully banned this practice as flawed and unethical, the insurance industry moved to sustain profit margins by shifting the lost revenue to customers with good credit ratings (including me). The resultant premium increases represent the extent to which the industry was preying on those with poor credit scores. This response by the industry is not the commissioners fault.

Imagine if you were having credit problems, then saw your premiums go through the roof as a direct consequence. Talk about kicking people when theyre down. Can we do better than this as a society? Can we question a predatory corporate agenda?

Insurance is essentially a humanitarian pact; a community of people voluntarily contributing to a pool as a means of rescue for those struck by misfortune. In years past, insurance was largely a nonprofit industry; how has this benevolent social institution evolved into an exploitative, for-profit behemoth?

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Letter: Insurance industry is exploitative - The Columbian