I've been an actuary with the NYS Insurance Dept for 37.5 years. Most of that time was spent reviewing automobile insurace rate filings. I know all about frequency and severity. Of course the severity of a claim is not the best predicter of future loss. Frequency of loss, regardless of loss amount has a greater impact on future rates. In auto, more attention is paid to an insured's driving record than accident record. A person's driving record is a better predictor of future loss. Although today, credit history is now in vogue.

Regardless of what impacts rates,and although my specialty was private passenger auto and Workers Comp, I don't believe there is a merit rating sytem in HO.