Some questions on Q and A

I am reading the Q and A bank for pricing and have following questions.

Q 3.9, a pricing question for EL business
In the answer, there is a point about investigating the changes of the rating factors over time. This point doesn't seem to appear in the Motor pricing question (3.8). I wonder why. Does that mean we do not need to investigate the changes over time for the motor rating factors?

Another point is nil claims should be treated consistently. This point is again not in the motor question. Does that mean that motor has less nil claim problems?

Thanks for your help.

 

More questions about NCD

Furthermore I wonder anybody knows a bit more about the pricing for No Claim Discount scale. I read the Q and A bank and am a bit confused.

In Q 3.16 (iv)

It mentioned that we need to give a profile of the different types of policyholders, i.e. 1st policyholder has 25% of average frequency, 2nd has 50% etc. I wonder how would that works. Do we need to make assumptions about the proportions of policyholders who have different claim frequency, then make different poison assumptions for each sub group, i.e. different λ?

Q 3.18 change (v)

One of the point said level 115 equals to 30% discount on a traditional UK scale. Given the highest scale is 200, I am not sure how this is worked out.

Thanks a lot.

 

thanks Ian.

thanks Ian.