Allstate using driving records to set homeowners' rates in Oklahoma

[Newsjock]

Source: Chicago Tribune

If you're a lousy driver, are you also more likely to be a mishap-prone homeowner?

Allstate Corp. believes that there's a correlation.

The Northbrook-based company confirmed that it has begun considering the driving records and auto-claims history of people who apply for a new homeowner's product in Oklahoma called House & Home.

House & Home, introduced in the Sooner State last October, effectively could make homeowners pay more of the cost of their roof repairs. Allstate said last week it plans to roll out the new product to additional states through 2014. Speaking to investors last week, Allstate Chief Executive Tom Wilson said House & Home could help the company reach its target of a 13 percent return on equity by 2014. Allstate's ROE was 4 percent at year end.

Read more: http://www.chicagotribune.com/business/breaking/chi-allstate-using-driving-records-to-set-homeowners-rates-20120207,0,4074865.story

[KT2000]

1. Someone develops a computer program

and sells it to the insurance companies. They will buy whatever to build a rationale for raising rates. Next thing you know - credit companies will use driving records to set their rates too.