The Federal Insurance Office (FIO) has taken a step toward fulfilling one of its obligations under the Dodd-Frank Act—a step that may ultimately have significant implications for auto insurers. Insurers should be prepared for FIO to request industry data and to take actions to influence changes to underwriting and rating practices. Executive Summary FIO’s call for industry data to help it determine the affordability of insurance products may have significant implications for insurers, as FIO questions the use of personal information in insurance pricing.
FIO is charged with monitoring the extent to which traditionally underserved communities and consumers—such as minorities and low- and moderate-income persons—have access to affordable insurance products, and it is starting with auto insurance. In April, FIO requested comments on how to define “affordability” and suggestions about the data and metrics that should be used to measure affordability.