March 28, 2014 1 min read

Letter to NAIC Prohibiting the Use of "Price Optimization" in Insurance Pricing as Clear Violation of Unfair Discrimination Provisions in State Rating Laws

CFA TC

The Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ) write to urge state insurance regulators, individually and as members of the NAIC, to stop the use of “price optimization” by insurers to set premium charges for consumers. In this letter, we explain what “price optimization” is, why it clearly violates statutory and actuarial standards barring unfairly discriminatory rates, and why it will lead to higher rates for the most vulnerable consumers for reasons completely unrelated to risk of loss.

Related Articles

CFA TC
August 07, 2026 / Blogs
Oklahoma Has a Major Homeowners Insurance Crisis. The Next Insurance Commissioner Can Help Change That
CFA TC
August 05, 2026 / Testimony & Comments
Consumer Federation of America Urges California Legislators to Oppose Harmful Auto Insurance Telematics Bill
CFA TC
July 30, 2026 / Press Releases
New Analysis: Homeowners Insurance Companies Earn Millions in Interest and Investment Income with Every Day of Claim Delay

Claim Payment Delays Are the Largest Source of Complaints to State Insurance Departments

CFA TC
July 14, 2026 / Reports
Redlined

The Persistence of Racial Inequality in the Cost of Homeowners Insurance