In particular, IBAO is concerned about any potential consequences to consumers caused by changes to postal code rating factors. If customers in high-risk territories get a break on their auto rates, for example, “there has to be a corresponding increase somewhere else, unless you are going to put strain on the insurance companies’ balance sheets, which I don’t think is in anyone’s interest,” Simpson said.
“We want to ensure that costs are actually taken out of the system,” Simpson added, so that insurers can pass those cost savings to brokers’ clients.