An insurance score must be updated every how many months?

An insurance score is a significant metric used by insurers to assess the risk of insuring a particular individual. It plays a critical role in determining premiums and coverage options. The standard practice is that an insurance score should be updated every 36 months.

This timeframe reflects the need for insurers to have up-to-date information that accurately reflects the policyholder's current financial responsibility and risk profile. Regular updates ensure that the insurance score remains relevant, allowing for adjustments in premiums that align with any changes in the individual's credit behavior or overall risk factors over time. By adhering to a 36-month update cycle, insurers can maintain both fairness in pricing and the integrity of their underwriting processes, which ultimately benefits both the insurance company and the policyholders.

This duration also suits the typical credit reporting cycles and the frequency with which individuals may have changes in their financial situations.