Review of "Risk Loads for Insurers" PCAS LXXVII, (1990 by Sholom Feldblum)

For many years now, a theoretical war has been raging on the subject of risk loads. Some favor the classical premium calculation principles, such as the standard deviation principle, the variance principle or the expected utility principle. Others favor the modern portfolio theories, represented most often by the Capital Asset Pricing Model, as known as the CAPM. Mr. Feldblum presents arguments against the classical premium calculation principles, calling them theoretically unsound, and presents arguments for the Capital Asset Pricing Model.