The Place of Conservation in Insurance [Discussion]

Mr. Whitney in his interesting paper presents a general survey of the underlying reasons for insurance carriers engaging in activities intended to prevent or postpone the happening of the eventuality insured against, and of the logical development of those activities. He points out that there is necessarily a time lag between an effected saving in loss before that saving is reflected in a reduced premium charge to the insured; that the carrier profits by the success of those activities only until the saving is absorbed by reductions in the premium charges, that eventually a static condition will develop, when the cost of the activities equal the savings effected and when the cost will have been gradually transferred to the insured, unless interfered with by unwise laws or state action. Mr. Whitney concludes with an implied plea for all the lines of insurance carriers to extend their conservation, or prevention, activities, striking the humanitarian note in conclusion.