Can We Improve the Compensation Rating Method?

The title of this paper implies that a critical review of the compensation rate-making method might result in definite benefit in the form of an improved procedure. The suggestion may seem untimely to some who choose to regard the present plan as a permanent program to be preserved indefinitely in status quo. To others, the present plan merely represents the latest stage in the gradual evolution of an ideal rate-making method which will approach its ultimate form only by occasional amendment. In accord with this latter thought, it is the aim of the writer to point out a few imperfections in the present plan and to suggest ways of correcting them.