Seasonality in Automobile Insurance Claims Frequencies

Abstract

Claims paid frequencies in the United States are found to follow a seasonal pattern in several states for bodily injury, collison, and comprehensive coverages. The Seasonal pattern has implications for the pricing, marketing, and regulation of automobile insurance as the timing of claims has a direct effect on the amount of investment income an insurance policy will generate.

In this paper the impact of seasonality on investment earnings is analyzed in eash state.