Some Considerations on Automobile Rating Systems Utilizing Individual Driving Records

With the recent introduction of automobile rating systems which modify an otherwise applicable rate by utilizing some form of individual driving record, a number of questions presented themselves. On the one hand it was felt that a mathematical description of a phenomenon-in this case risk distributions by number of accidents- is intrinsically of value and constitutes an advance. The first part of this paper is concerned with the presentation of such a description. A frequency distribution, known as the negative binomial distribution is utilized in these first sections.