A Stochastic Approach to Automobile Compensation [Discussion]

Don Weber’s paper, “A Stochastic Approach to Automobile Compensation,” provides us with a most interesting approach to a subject of considerable current concern. If there were those who thought that the problem of pricing a “no-fault” automobile insurance system was still somewhat academic when the paper was presented last May, more recent events will have quickly brought the realization that the problem is now squarely in the forefront.