Observations on the Latest Reported Stock Insurance Company Expenses for1960

The Loss and Expense Ratios booklet published annually by the New York Insurance Department summarizes pertinent figures for all companies and for each line of business. It serves as a handy guide for comparisons among companies and has also been used either directly or indirectly for ascertaining the reasonableness of expense loadings which are used by rating organizations. If a company's expenses vary by amount of written premiums, then, due to the fact that expense loadings are determined from average experience of the past, there is a possibility that some companies could be charging rates which afford inadequate allowances for expenses. Conceivably, the converse might also be true. To the writer's knowledge, there has nowhere appeared any summary of expenses which compares companies according to size of premium volume written.