The Distribution of Casualty Administration Expense by Line of Insurance [Discussion]

The expenses incurred in operating the casualty insurance business are about one-half of the total cost. They constitute that part of the cost which has aroused greater resistance among the insurance buyers and has produced greater criticism by state administrative authorities. Every effort to allocate and measure the incidence of expenses more accurately and to introduce the distribution of expenses into the rating procedure more equitably should be of interest to insurance carriers.