The Census Method [Discussion]

Aside from the advantages claimed for the census method of compiling exposures as advocated by Mr. Longley-Cook, he has drawn attention to the fact that through innovations in established statistical procedures we might accomplish substantial economies without seriously injuring the value of the resulting data. For many years the old policy year basis for compiling ratemaking experience was regarded as the ideal for many important lines of casualty insurance. The policy year basis could be termed the “gold standard” for compiling ratemaking statistics. In recent times we have observed a transition to the calendar year-accident year basis for preparing data and now Mr. Longley-Cook has introduced a further shortcut. It would seem desirable to consider other means by which we might bend our procedures to yield further savings in expense without making too great a sacrifice in the dependability of the resulting experience. One such simplification in the treatment of exposures will be suggested later in these comments.