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NY Examines Occupation in Setting Car Insurance Rates

The New York Department of Financial Services has asked Allstate Corp., Berkshire Hathaway Inc.'s Geico unit, Liberty Mutual, and Progressive Corp. to explain why the practice of using occupation and education in pricing should not be prohibited, according to sources cited by the Wall Street Journal...
November 22, 2016

The New York Department of Financial Services (DFS) has asked Allstate Corp., Berkshire Hathaway Inc.'s Geico unit, Liberty Mutual, and Progressive Corp. to explain why the practice of using occupation and education in pricing should not be prohibited, according to sources cited by the Wall Street Journal.

Actuaries suggest that using data such as occupation and education can help them better price auto insurance risks when combined with other data, such as gender, age, and, in some cases, credit scores. However, consumer advocates say that using these factors can cause significantly higher rates even if the drivers covered are not risky.

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