Credibility and Solvency

An important fact brought into sharp focus by the papers submitted to last year's program is that a healthy insurance enterprise not only must produce adequate earnings but must do so steadily and predictably. That is to say: the risks that confront the enterprise must be tightly controlled. Management must steer a course mindful not only of reasonable expectations but also of unforeseen deviations there from. This is true of the insurance enterprise in particular because of the urgent character of its obligations to policyholders who have suffered insured losses.