A Study of the Size of an Assigned Risk Plan [Discussion]

"What can be expected as the normal size of the New York Automobile Assigned Risk Plan?" Mr. Harwayne attempts to answer this question by reducing the acceptance or rejection by underwriters of automobile risks in the State of New York to a consideration of the accident records over a three-year period. He further reduces this criteria to an examination of bodily injury claim frequency by classification, assuming 50% of such a figure as involving fault on the part of drivers. From this base, he then determines the percentage of drivers free of liability over the three-year period, and compares this with the percentage of business voluntarily written. The resultant ratio and its relation to unity indicates whether or not the number of assigned risks is greater or less than can be expected.