Tuesday, February 23, 2021
On February 18, 2021, California Insurance Commissioner Ricardo Lara announced a revision to proposed regulations regarding the use of affinity groups in insurance rating. The commissioner will hold a virtual workshop on the revised draft on March 23, 2021, at 1:00 pm PDT to give stakeholders another opportunity to comment on the proposal. The commissioner explained that the purpose of the regulations is to require insurers to give greater access to auto insurance discounts for low-income drivers and people of color.
IN DEPTH
The proposed regulations apply primarily to private passenger automobile insurance. They would permit insurers to use group membership as an optional rating factor subject to limitations, including requirements for relativities and creditability of data. They also require insurers to apply the non-group rate to a driver if that rate is lower than the group rate.
Consumer Confidential: Your car insurer may be using pre-pandemic mileage to set 2021 rates
David Lazarus, Los Angeles Times
You could say Arthur Krieger, a former detective with the Los Angeles Police Department, is the sort of guy who expects reasonable answers to reasonable questions.
So Krieger, 88, was more than a little nonplussed when he recently contacted his car insurer, Hartford, to ask about the mileage being used for his coverage renewal.
Like many if not most of us, the West L.A. resident is driving a lot less because of the pandemic. Last year around this time, he noticed that Hartford estimated he drives his 2001 Toyota Prius 9,000 miles a year.
U.S. Financial Services Leaders Support Principles for Low-Carbon Transition
U.S. financial services leaders have stated their support in principle for a U.S. transition to a low-carbon economy.
The support comes following the release of the Principles for a U.S. Transition to a Sustainable Low-Carbon Economy by the U.S. Climate Finance Working Group.
The group is comprised of 11 financial services trade associations that have come together around climate and sustainability topics relevant to their respective areas of the financial services industry and the broader corporate sector.
Working Group members include: American Bankers Association; Bank Policy Institute; Financial Services Forum; Institute of International Bankers; Institute of International Finance; Investment Company Institute; and Securities Industry and Financial Markets Association.