Connecticut Issues Bulletin Banning Price Optimization
Posted on Dec 4, 2015 in Insurance Developments and Trends, Insurance Regulation | Comments Off on Connecticut Issues Bulletin Banning Price Optimization
In a recent bulletin, Connecticut became the 16th jurisdiction to ban price optimization in insurance pricing. Connecticut Insurance Commissioner Katherine L. Wade stated that the Department “views price optimization as a discriminatory practice and therefore a violation of state insurance law.” Wade specifically cited factors such as a customer’s “propensity to shop for insurance or to complain about rates” as impermissible in determining rates. The bulletin applies to all property and casualty insurers in Connecticut and requires any such insurer using price optimization to resubmit filings, having removed all price optimization factors, within 60 days.
