Hazam "convictions"
I am not familiar with the term "convictions frequencies". What is the author referring to when he says, "these results are based strictly on claim frequencies, not claim frequencies plus convictions frequencies. Adding convictions no doubt helps substantiate larger credits ..." ?
Like a conviction for some kind of moving violation (DUI, speeding, etc.) that doesn't result in an insurance claim?
Comments
You're correct, Hazam is referring to using additional driver characteristics, particularly the presence of driving offenses such as speeding or DUIs etc that are presumably correlated with insurance claims. The use of these characteristics would add segmentation which, in Hazam's opinion, would make it easier to justify some of the larger rating factors seen at the time.
Hazam's point appears to be although the experience of a single car-year is measurable and significant, the use of claim frequency relativities alone doesn't appear to be sufficient to justify some of the large rating differentials used in rating plans at the time.