By using this factor, we are able to more accurately rate individual clients by customizing rates and charging an appropriate premium for the risk. Analysis shows a direct link between a person’s credit score and the frequency and severity of claims. Credit score is used with other more traditional rating factors such as claims history, age of home and geographical location to determine the level of risk and appropriate premium.Ĭredit score reflects a client’s level of responsibility and behaviour when it comes to managing their finances. In fact, most major property insurers in Canada have been using credit score for years. The value of using credit score has been demonstrated as a useful and accurate predictor for future home insurance claims. Co-operators uses credit score, where permitted by provincial regulations, as a rating factor to determine home insurance premiums.
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