Rate Regulation

That there must be some sort of regulation of competition in insurance, either by organization among the carriers or by the state, is too well established now to need demonstration. The more pertinent question at this stage of our development is: what shall be the nature of this regulation? The object to be secured is obvious : right rates. A "right rate" implies that the hazard of a risk can be correctly determined; but this determination would be an extremely difficult one to make even were no elements involved other than a pure scientific desire for correctness. When however the problem is complicated by the desire for profit and by the presence of competition, the difficulties become much greater.