Recent Developments with Respect to the Distribution of Workmen'sCompensation Insurance Costs

It has been contended for several years that the procedure followed in developing rates for workmen's compensation insurance does not permit of an equitable distribution of costs among risks. This contention rests on two fundamental principles. First, that the expenses incurred in conducting the business are not wholly proportional to the premium size of risk but consist of the sum of a fixed amount per policy and an amount which is proportional to the premium, and second, that the loss cost varies with the size of the risk.