KCRA channel 3 in Sacramento is reporting now on identity theft insurance. They are reporting on a Consumers Union article that concludes that this is one of the ten insurance policies you do not need.
Great. Thanks. Of course, this was reported here in this blog back in October. At that time, I advised you to wait. Nothing has changed since that time. This is still a bad product offered only to profit insurance companies.
I have not seen any statistics on claims filed on these policies. But, I am guessing very few claims are paid. If you are a regular reader of this blog, you know that insurance companies generally do not make a profit on the underwriting side of business, but on investments. I am guessing that they are making an underwriting profit on identity theft insurance.
My advice: still stay away.