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Joint Statement Demanding that IL Stop Using Big Data to Discriminate Against Insurance Customers

Date: 
01/06/2016

  For Immediate Release

January 6, 2016                                                                                  

 

Consumer Groups Criticize Illinois Insurance Director Dowling for Failing to Enforce Unfair Discrimination Law and Protect Consumers 

Groups Call on Dowling to Protect Consumers from Unfair Rates Caused by “Price Optimization

 

Washington, DC – A coalition of consumer groups are calling on Acting Illinois Insurance Director Anne Melissa Dowling to reverse her “do-nothing” position and start protecting Illinois consumers from the unfair use of certain information unrelated to insurance risk – such as personal consumer shopping data – to set auto and homeowners insurance prices.  The groups say that the use of price optimization by Illinois insurers violates Illinois statutes requiring cost-based insurance pricing and prohibiting unfair discrimination.

 

In a Crain’s Chicago Business story this week, Dowling stated that the Illinois Insurance Department is aware of the use of price optimization by Illinois insurers but will not take steps to protect consumers because “there is no agreed-upon definition.”  Dowling further left consumers to fend for themselves against insurers by telling them to shop around – despite the lack of any effort by her Department to help consumers with information necessary for consumers to meaningfully do so.

 

The use of non-cost factors to set individual insurance premiums is unfair discrimination

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