Nonproportional Reinsurance and the Index Clause, [Discussion]

Mr. Ferguson has done such a thorough job of discussing the effects of inflation on the insurance business. and explaining all the ramifications of the index clause, which is one of the solutions to the inflation problem, that there is little for a reviewer to comment on. Nevertheless, there are practical aspects of the problem that interest this reviewer and that may be useful as a supplement lo Mr. Ferguson’s paper.