US Auto Insurance Companies Prepare for a
'Post Credit Score' Environment

Press Release, VortexDNA, Christchurch, NZ January 26, 2010. VortexDNA, the predictive data company, says that its US auto insurance clients are preparing for a big shake up in the way they price insurance policies. Bills before the Washington State Senate and House Committee on Financial Institutions & Insurance this week are seeking to ban the use of credit scores in the pricing of car insurance.

VortexDNA CEO Branton Kenton-Dau today confirmed that several of the company's US insurance clients have asked VortexDNA to model how effective VortexDNA data would be if credit data was no longer available. "We work with three of the top ten auto insurers in the US," says Kenton-Dau. "Every insurer we have spoken to relies heavily on credit data to make predictions about who will claim. If credit data is banned, this is going to have very large consequences for the industry."

While the insurance industry claims that the use of credit scores leads to fairer premiums for everyone, state regulators have received many complaints of unfair treatment by customers. VortexDNA data, which is not based on a person's credit history, is being seen by the industry as an increasingly attractive alternative. "Fortunately, VortexDNA data is very predictive of who files an auto claim," says Kenton-Dau. "Even with credit data our data enables insurers to reduce their premiums for low risk drivers by an average of $56 per year. If credit data is banned our clients still have an effective way to ensure premiums remain fair."

VortexDNA has pledged to provide its data to only one third of the market until 2015. For car owners this means that comparing prices between companies will be the best way to keep the cost of insurance down as the price gap between insurers widens.

Detailed information is available on House Bill 2513 and Senate Bill 6252. These bills may prohibit insurers from using consumers' credit history in determining personal insurance rates, premiums, eligibility for coverage, or cancellation of coverage.

For more information, please email branton@vortexdna.com or phone +64 3 376 4549.