Pricing

Question 1

What factors should one consider when determining of a policyholder has any control over a rating factor?

Answer 1

1. Personal circumstances
2. External circumstances
3. The time frame being considered - some factors are more controllable in the longer term
4. Affordability - place of residence, choice of car

Question 2

What are the main areas to consider for any new proposal that will be implemented as law?

Answer 2

1. Impact on different groups of policyholders
2. impact to insurers
3. practicalities of enforcing the proposal
4. the extent to which the social purpose & benefits of insurance are met

Question 3

List measurable factors of driver’s ability for fleet business that will directly impact claims cost

Answer 3

1. age : proxy for experience
2. time keeping : hours per shift
3. telematics stats: speed, acceleration, braking
4. type of licenses
5. date license received
6. knowledge of Road Traffic Law, highway code and driver behaviour
7. accident history/number of penalties
8. medical history/sick days
9. sight restrictions