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Wednesday, August 3, 2016

FIO Releases Auto Insurance Affordability Index

In July, the FIO released an affordability index for auto insurance. In finalizing this framework, the FIO made some changes from the proposal including using the following:
  • Average written personal automobile liability premiums
  • A different method of defining and accounting for Affected Persons
  • Median household income data for ZIP Codes identified as majority-minority and majority-LMI areas
For its initial affordability study, FIO will use Census Bureau data and will not collect data directly from insurers. For the next study, in 2017, FIO will request information from some automobile insurers.