Why would The Co-operators want to use credit score as a rating factor?
Credit score tends to reflect a client’s level of responsibility and behaviour when it comes to managing their finances. Actuarial analysis (including a recent study by The Co-operators) shows a direct link between credit score and the frequency and severity of claims. By adopting this factor, we are able to more accurately rate individual clients by customizing rates and charging an appropriate rate for the risk. The good news is that clients with good credit scores will benefit by receiving the most competitive premium.
