Should the Compensation Premium Reflect the Experience of the Individual Risk [Discussion]

These papers raise four fundamental issues: (1) whether any form of experience rating is consonant with sound insurance theory; (2) whether (if the first question be answered in the affirmative) experience charges and credits should be graduated to size of risk as well as loss ratio; (3) whether the experience rate should be retrospective or prospective and (4) what statistics are requisite to test the several forms of experience rating already existing or proposed. Within the appropriate limits of a discussion it will not be possible to do more than summarize my own views upon these matters.