Eric S. Poe is at the forefront of efforts to eliminate income proxies from car insurance pricing, advocating for rates based purely on actual driving behaviour rather than socioeconomic factors.
The Complexity of Car Insurance Premiums
Calculating vehicle insurance premiums is a complicated process influenced by numerous factors. Traditionally, insurers have looked at driving history, vehicle type, and location. However, over time, additional criteria—such as education level, occupation, credit score, and homeownership—have been introduced. These elements, often referred to as “income proxies,” might seem neutral but tend to reflect a person’s socioeconomic status. This correlation can lead to unfairly higher premiums for lower-income drivers, regardless of how safely they drive.
About CURE Auto Insurance
Founded in 1990, CURE Auto Insurance was created as a not-for-profit company with a clear mission: to offer affordable car insurance rates primarily based on driving records, not income or lifestyle indicators. The firm was co-founded by James J. Sheeran, former New Jersey Insurance Commissioner, and Dr Lena Chang, an award-winning insurance actuary. Headquartered in Princeton, New Jersey, CURE has since expanded into Pennsylvania and Michigan, continually pushing for fairness and equity in insurance.
Eric S. Poe’s Professional Background
Eric S. Poe, CEO of CURE Auto Insurance, brings extensive expertise to the table. As a licensed attorney in New Jersey and a Certified Public Accountant, Poe has become a respected voice on insurance reform, frequently appearing on major networks such as CNBC and Fox Business News to discuss industry issues and advocate for change.
Fighting Against Income Proxies in Insurance
Poe’s dedication to removing income proxies stems from a firm belief that these factors unfairly penalise lower-income drivers. In 2008, he testified before the U.S. House Committee on Financial Services, emphasising that while certain proxies may be linked to loss ratios, they essentially serve as stand-ins for income. This system disproportionately impacts those least able to afford higher premiums, reinforcing socioeconomic disparities.
Legislative Victories and Impact
Poe’s advocacy has led to tangible progress. New York banned the use of education and occupation as rating factors in 2018, with Michigan following in 2019. These legislative wins represent critical steps toward eradicating discriminatory pricing and have encouraged other states to consider similar reforms.
CURE’s Expansion Into Michigan
In 2021, CURE extended its services to Michigan, further demonstrating its commitment to equitable pricing. The company promised savings of up to 50% for drivers in the state by refusing to use credit scores as a rating factor. Within a year, CURE insured over 30,000 Michigan drivers, with average savings exceeding £800 per policyholder—highlighting the success of their model and its potential to inspire wider industry change.
Embracing Technology for Growth
To support rapid expansion and maintain efficiency, CURE implemented Guidewire’s InsuranceNow, a cloud-based insurance platform. This technology allowed the company to enter the Michigan market swiftly—within six months—issuing 7,700 quotes and 900 policies in the initial fortnight. The platform’s flexibility has been instrumental in scaling CURE’s operations smoothly.
Philosophy and Vision for Broader Change
Eric Poe’s stance against income proxies is driven by a core belief in fairness and equality. He sees leadership as challenging unjust systems and advocating for those marginalised by existing policies. Beyond insurance, Poe supports wider societal reforms, including mental health education and systemic policy changes to reduce socioeconomic inequality.
Conclusion: A Continuing Mission for Fairness
Eric S. Poe’s campaign to end income proxies in car insurance rates sheds light on larger issues of social justice and equity. Through legislative advocacy, public education, and personal commitment, he has confronted an industry norm long accepted as inevitable. While progress has been made, Poe’s work reminds us that creating lasting systemic change demands ongoing vigilance and unwavering dedication to fairness.
- Eric S. Poe’s Mission To Eliminate Income Proxies In Car Insurance Rates - May 31, 2025
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