Report of Committee on Compensation and Liability Loss and Loss Expense Reserves [Discussion]

This report is of very great importance, not only as respects the existing unsatisfactory state of affairs in regard to Schedule P but also in respect of the very sound suggestions advanced by the Committee to cure the present situation. The present state of affairs as to the treatments of reserves for Liability and Compensation insurance in the annual statement is so confused and so out of date that those of us whose job it is to deal with these matters are apt to take it for granted that everyone else is also fully convinced of the need for reform and, if I may make one comment on the report (a criticism, if you will, of omission rather than of commission) it is that the report may well have been amplified as to the reasons for the unsatisfactory nature of the present Schedule P methods. The report should contain the whole story since, before its recommendations can be carried out, it will be necessary to convince not only carriers and company officials, Insurance Department Commissioners and personnel but also, in many instances, legislators.