Compensation Reserves

Statement of the Problem: The subject under discussion is the loss reserve liability for workmen's compensation insurance. It is obvious that there is need for as great an accuracy as possible in the amount of this reserve, because of the many interests involved, including the injured employees, the policyholders, the state, the stockholders where that form of organization prevails, and so on. The problem is to find some way to check, or to prove, the figures set forth as the workmen's compensation reserve, and such method should be as simple as possible, be reasonably easy of application, and obtainable from current data.