Economists were forecasting into the unknown, and insurance carriers were trying to understand the impact of their scoring models on new and renewal business.
We understand this reaction. Credit data is dynamic and changes. For example, the frequency of credit inquiries — which tend to have the strongest correlation to risk for P&C insurance carriers —typically declines during economic downturns, resulting in improved credit scores. And with COVID-19, we saw this as well with auto, home and tradeline activity all being down.
Let’s dive deeper into how the pandemic impacted LexisNexis® Attract™ scores.