Household rating 1992

Document description

In contrast to the heavily analysed motor account the risk factors underlying household insurance have in the past attracted little attention and rating was on a simplistic basis. The losses arising from storm and particularly subsidence have led to changes in the rating of cover for buildings in the past year. The working party initially hoped to identify the underlying risk factors and relate these to claims data but it soon became apparent that no worthwhile data would be available as the relevant factors are not recorded. Data analyses have, therefore, been restricted to one particular topic which concerns the usefulness of geological data for rating the subsidence element of the risk.