Vehicle postcode zoning in personal lines rating

Document description

This paper examines the methods and information that can be used to group individual postcodes in to rating areas for pricing. We have tried to highlight where companies can obtain additional useful information to help them in this exercise and have set out a description of some methods that can be used to complete a zoning exercise. We have also examined how companies currently rate postcodes. This has highlighted some inconsistencies in our approach as a market to individual postcode rating. This may suggest this is an area which insurers could usefully review.