Frequency is how often claims occur relative to a measure of exposure, such as policies in force or insured units over a period. Combined with severity, it gives expected losses.
Frequency can shift with changes in behavior, regulation, advertising and legal doctrine. A rule that lengthens a limitation period, for example, can raise the number of claims that are eventually filed from the same underlying events.
Litigation frequency is also shaped by the plaintiff bar and its funding. Where capital is available to carry cases, more claims may be pursued, and insurers monitor that environment.
Frequency is not the probability that a given insured will have a claim. It is a rate across a population.
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