Definition

The rules and laws that govern how insurance companies operate. Regulations protect consumers and keep the industry fair and transparent.

What to consider

  • Monitor trends in how often claims are made.
  • Use frequency data to adjust risk assessments.
  • Consider strategies to reduce unnecessary claims.

Real world scenarios

  • An insurer analyzed claims frequency to determine how often customers filed claims in a given period.
  • A business reviewed its claims frequency to adjust risk profiles for group insurance.
  • An individual’s low claims frequency contributed to lower premiums over time.

Related terms

Insurance & Financial Protection