In insurance underwriting, what two types of data are increasingly used?

In insurance underwriting, the use of parameters such as NSCRAs (Non-traditional Credit Reporting Agencies) and insurance scores is becoming increasingly prevalent. Non-traditional credit reporting agencies provide alternative data that helps insurers assess risk profiles beyond conventional credit reports. This can include information from utilities, rental payments, and other financial activities that do not typically appear on traditional credit reports.

Insurance scores, which integrate various data points including an individual's credit behavior and claims history, allow insurers to better predict future claims likelihood. By combining both NSCRAs and insurance scores, underwriters can create a more comprehensive view of an applicant's financial responsibilities and potential risk, enabling them to make more informed decisions regarding policy issuance and pricing. This focus on enhanced data sources reflects a broader trend in the insurance industry towards utilizing more adaptive metrics for evaluating risk.