Florida: Minorities harmed by insurance companies’ underwriting tactics (Tampa Bay Business Journal)

The Florida Office of Insurance Regulation has issued a report analyzing the insurance industry’s use of occupation and education for the underwriting and rating of auto insurance policies. The report finds the use of these practices unintentionally harms minorities and low-income individuals in determining auto insurance premiums and insurance eligibility.

While the practice is legal, the practice creates unintended effects that the government may find unacceptable, said Kevin McCarty, insurance commissioner. In 2003, the Legislature passed a law severely limiting the use of credit scoring in insurance underwriting.

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