Protecting Risk-Based Pricing

Risk-based pricing is the practice of insurers using a wide variety of objective data—including education and occupation, among others—to help determine risk in order to keep insurance as affordable, competitive, and available for consumers as possible.

This approach is the fairest way to match insurance costs to risks, so no one is paying more for insurance than they should. Americans benefit from risk-based insurance pricing through:

• Fairer, lower, and more accurate rates
• More choices and options in the insurance market
• The less-risky do not have to subsidize the riskier

Risk-based pricing factors leverage proven science to ensure fairness and competitive pricing for consumers. As Securing Our Future continues to fight to protect the risk-based pricing model to promote the most affordable, accessible insurance, we are also working to explore additional avenues for advancing social equity and financial empowerment for consumers, businesses, and communities nationwide.