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A Publication of WTVP

In the April issue of InterBusiness Issues, JR Runkel of the Fortner Insurance Agency outlined the debate regarding an insurance company's ability to use credit scores when pricing insurance. Here are some highlights on the debate, according to the Texas Coalition for Affordable Insurance Solutions (TCAIS):

Lawmakers eventually will settle this debate, but while they work on it, look "upstream" to a part of the scenario in which you can actually effect change. Studies have shown there's a strong correlation between someone with poor credit history and the likelihood to file an insurance claim. Financial literacy should improve credit scores. It follows that improved credit scores should reduce the number of insurance claims.

For insurance and financial service companies, two keys to success are loss mitigation and creating demand. When people better manage their finances, there should also be an increase in the demand for financial services products. Therefore, equipping tomorrow's workforce with financial literacy is perhaps the best answer to the insurance company/credit score usage question. It certainly is a more proactive response.

Junior Achievement (JA) is an established avenue in which to effect positive change in the next generation and their credit score. JA uses hands-on experiences to help young people understand the economics of life. The financial literacy the Junior Achievement curriculum teaches should help reduce the likelihood of insurance claims. JR Runkel of Fortner Insurance understands that, which is why he's a JA Classroom Consultant.

JA fits in perfectly with the mission of the two large insurance and financial services companies in nearby Bloomington/Normal: State Farm and COUNTRY Insurance & Financial Services.

Junior Achievement is an investment not only in the students and their future, but in the achievement of the missions of these two local companies. IBI

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