Actuarial Modelling of Claim Counts Risk Classification, Credibility ...

Risk Classification 57
Number of policyholders
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
9358
5147
Annual claim frequency
.160
.152
.150
.140
.136
.130
.120
.110
.100
.090
.080
.070
.060
.050
.040
.030
.020
.010
Male Female
.000
Male Female
Gender
Gender
Figure 2.3 Composition of Portfolio A with respect to Gender (left panel) and observed annual claim
frequencies according to Gender (right panel).
Use
The majority of the policyholders (12 745 insured drivers, representing 88.0 % of the
portfolio) use their vehicle only for leisure and commuting. There are 1760 professional
users (representing 12.0 % of the portfolio). Figure 2.5 indicates that the influence of the use
of the vehicle on the number of claims is almost negligible, as the annual observed claim
frequencies are almost equal for the two categories of insured drivers: 14.6 % for private
users and 14.3 % for professional users.
Premium Split
Figure 2.6 indicates that 10 568 policyholders (representing 74.5 % of the portfolio) pay
their premium once a year. The remaining 3937 policyholders (representing 25.5 % of the
portfolio) pay their premium twice a year, thrice a year or on a monthly basis. Figure 2.6
also shows the influence of the premium split on the number of claims: it can be seen that
splitting the premium payment is associated with a considerable increase in the observed
annual claim frequency (from 12.4 % to 21.1 %).