Risk Loads for Insurers by Sholom Feldblum (Nov. 1990), Discussion by Stephen Philbrick (May 1991), Author‘s Reply to Discussion (Nov. 1993) - Discussion

I have been following with great interest this discussion "thread" in the Proceedings [I, 2. 31, along with the recent papers of Rodney Kreps [4] (with Daniel Gogol‘s reply [5]) and Glenn Meyers [6] (with Ira Robbin‘s reply [7] and Meyers‘s response [S]). Obviously, this is an important topic for the CAS, as evidenced by the amount of discussion it has generated; and it is of particular interest to me, given my current specialization in rate of return, surplus need, and related areas of financial actuarial practice. The focus of the FeldblumiPhilbrick discussion has been five methods of setting risk loads and the relative merits and deficiencies of each. The other papers by Kreps and by Meyers deal with related approaches and issues. I wish to add two observations to the discussion: