Basic Economic Theory For an Insurer's Rate of Return and For Its Regulation, [Review of Paper]

Mr. McGuinness has made another fine contribution to the actuarial literature in several respects. First and foremost, he has weaved insurance company profitability into the main stream of general economic theory. In so doing, he has opened up new avenues for research and analysis. Hopefully, this will allow other professionals to bring their training and expertise to bear on the difficult problems of insurance company profitability and rate regulation. In addition, Mr. McGuinness has set an example which should be a guideline for all actuarial papers with a comprehensive literature search and thorough documentation of references. This standard will help improve all papers and improve the content and usefulness of the actuarial literature.