Because financial credit scores can be more volatile, that leads to the commentary you see in the news in regards to the economic downturn. The story often goes: unemployment leads to potentially hard times for individuals, making it difficult to meet their financial obligations, thereby deteriorating their credit score. This story might be the case with a financial credit score, but it’s not the case with a credit-based insurance score.
Our models go back decades. We are an industry leader in risk assessment for insurance, and we have seen events like this before (not pandemics in particular, but other large-scale economic downturns). Certainly, the economic inflection point was in Q2 2020 where we saw a very sharp decline. At the time, looking back at our last major economic downturn around 2008, we anticipated our scores would be very stable.