HispanicBusiness

Respondents were then given a series of facts about credit data use in determining insurance premiums and policies, including:

•"Studies show that about 45 percent of auto insurance customers pay lower premiums when insurance companies use credit information to help determine premiums, about 45 percent of customers see no change in their premiums, and about 12 percent pay higher premiums." •"Government agencies like the Federal Trade Commission (FTC) and the Texas Department of Insurance have conducted studies that found a strong connection between a person's credit information and their likelihood of filing an auto insurance claim." •"When credit-based information is used to help determine auto insurance rates, more than three customers pay less for every one customer who must pay more." •"Insurance companies only consider information about how someone manages their credit; not how much money or income they have. Income is not part of the credit information an insurance company uses."

After being informed of these facts about insurance scores, the number of respondents who agreed with the practice increased. Among those who agreed, the proportion of respondents rose from 23 percent to 38 percent -- a 65 percent relative increase. Similarly, the proportion of respondents who disagreed declined from 52 percent to 34 percent -- a relative decrease of 34 percent.

"In order for carriers to accurately determine credit-based insurance risk scores, it is imperative to have a solution that leverages not only indicative insurance-related information, but can also effectively marry together consumer credit behavior," added McElroy.

To enable carriers to accurately determine the weight of credit information to determine insurance scores, TransUnion's introduced the TrueRisk(SM) solution. TrueRisk(SM) combines individual-level credit information to predict the potential loss ratio for a given consumer seeking an insurance policy. In order to develop this solution, TransUnion combined its rich history of unique data collection, analytics expertise and collaborative customer relationships.

For more information about TrueRisk(SM), please visit: transunion.com/TrueRisk.

About the survey
The online survey included responses from 881 standard U.S. insured drivers. The survey took place from April 24 - 25, 2013.

About TransUnion
As a global leader in information and risk management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and enhanced decision-making capabilities. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business



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