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Determination of Fair Underwriting Return for Property and Liability Insurance Industry

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Authors
Kim, Uk Hun
Issue Date
1997-06
Publisher
서울대학교 경영대학 경영연구소
Citation
경영논집, Vol.31 No.1/2, pp. 202-220
Keywords
202-220
Description
1997-06
Abstract
There have been substantial debates and controversies about whether to allow for investment income in setting rates for property and liability insurers. The debate began

at least as early as 1919 when a resolution was introduced at the National Convention of

Insurance Commissioners to determine the extent to which investment income should be

considered in ratemaking. After two years' debate the so-called 1921 Standard Profit Formula was adopted by the NAIC. That formula provided that fire insurers were entitled to a 5 percent underwriting profit and no part of investment income should be

considered in ratemaking process (Webb, 1979). No explanation was given to indicate how the percentage was derived.
ISSN
1229-0491
Language
English
URI
https://hdl.handle.net/10371/52786
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College of Business Administration/Business School (경영대학/대학원)Institute of Management Research (경영연구소)경영논집경영논집 vol.31 (1997)
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