Automobile Collision Deductibles and Repair Cost Groups: The Lognormal Model [Discussion]

Mr. Bickerstaff has presented an excellent paper on the rating of Automobile Collision coverage. As he points out, there is a great need for a review of our Automobile Physical Damage ratemaking techniques. Unlike the Liability coverages which have been treated rather exhaustively in respect to the characteristics contributing to loss, our Physical Damage ratemaking techniques have largely ignored the loss characteristics inherent in the automobile itself.