Optimum Structure of Trends of Activities to prevent Chance Damages

In the socialist countries, where insurance--like the other primary sectors of the national economy- has been nationalized and is conducted by a single state-owned insurance company, a whole number of actuarial problems have arisen. These are problems which either did not interest the private insurance companies or else were marginal questions for them, of no great practical importance. The actuarial problems which have cropped up or have acquired particular importance in the conditions of socialist economy, include questions connected with evaluation of the efficiency of outlays for the insurance company's preventive activities intended to restrict the number and scope of chance damages 1). Henceforth we shall refer to expenditures of this sort as preventive outlays /expenditures/.