Provision for Expenses in Workmen's Compensation Premiums [Discussion]

Mr. Woodward points out that although there has been little discussion, except in life insurance, of the theory upon which premiums should be loaded to provide for expenses, the practice seems to have followed the simple hypothesis that expenses should, in general, be assessed in proportion to the value of the insurance benefits provided. Mr. Woodward does not lay down at the outset of his paper the hypothesis which seems to him the true hypothesis, but does say in the closing paragraph of his paper where he answers the charge that the proposed change would be criticized as involving discrimination: "But the real test of discrimination is whether or not those fundamental principles of mutuality which enter into all insurance are violated. And the test of mutuality is that each insured shall be charged as exactly as possible with the value of the benefit in his policy plus his share of the expenses assessed in the proportion in which he has contributed to produce them." (Italics mine--A. H. M.)