What does the term "claims frequency" refer to?

The term "claims frequency" refers to the rate at which claims are submitted over a specific period. This concept is crucial for insurers and claims handlers as it helps in assessing risk and setting premium rates. High claims frequency can indicate increased risk associated with a particular policy or insured entity, while lower frequency may suggest lesser risk.

Analyzing claims frequency provides insight into patterns, helps forecast future claims, and enables insurers to manage their resources effectively. By understanding how frequently claims occur, insurers can make informed decisions about underwriting and pricing strategies.