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FTC asks insurers about charges to homeowners

WASHINGTON, Dec 23 (Reuters) - U.S. regulators have asked nine major insurance companies, including Allstate Corp <ALL.N> and Travelers Cos Inc <TRV.N>, to provide information about how they set prices for homeowners' coverage, the Federal Trade Commission said on Tuesday.

The FTC said it ordered the companies to provide data about credit-based insurance scores, essentially the equivalent of a credit rating but one that focuses on how much particular consumers cost their insurance companies.

The U.S. Congress asked the FTC to look at the use of credit-based insurance scores in 2003. An FTC study on automobile insurance released in 2007 found that the scores allowed insurance companies to determine who was likely to be high risk and to charge those people more.

The study found African-Americans and Hispanics tended to have lower insurance scores than whites and Asians and, because of this, tended to pay more for auto insurance.

The other companies queried about the study for homeowners' insurance were Chubb Corp <CB.N>, State Farm Mutual Automobile Insurance Company, Fire Insurance Exchange, Nationwide Mutual Insurance Co, United Services Automobile Association, Liberty Mutual Holding Co Inc and American Family Mutual Insurance Co. 

On the Web
The order itself can be found at the FTC web site at: http://www.ftc.gov/os/2008/12/P044804facta.pdf 


New Quadinfo.com site!

We are happy to announce that we've released Quadrant's new Quadinfo.com site.  This site serves as our company website and we hope to allow visitors to this site to get a better understanding of who Quadrant is and what we are all about.  We look forward to hearing your comments!

Quadrant BlogTeam


Welcome to the QuadrantBlog

Welcome to the QuadrantBlog.   

This blog was set-up to allow you to read articles and enter comments about Quadrant's suite of products and services, as well as, articles pertaining to the Property and Casualty Insurance industry.  We will be adding articles/blogs which we believe will be of benefit to your organization and hope to hear comments from insurance experts such as yourself.

Happy Blogging!

Quadrant Blog Team


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