Compulsory Automobile Insurance Rate Making in Massachusetts [Discussion]

The important thing which Mr. McDonald's paper reveals is the very great difficulty encountered by an actuary in fulfilling the rate making requirements of a compulsory law which arouses as much ill-informed public discussion as the Massachusetts Compulsory Insurance Law. We see portrayed a whole series of attempts to do a ratemaking job which as far as possible relies on indisputable loss data and probably more accurate expense data than are available elsewhere, by applying to these data a series of actuarial formulae which make for as much mechanical precision as possible. Keywords- LOB-Auto Physical Damage