Summary of Call Papers

Another view of profit in a free enterprise system is that profit is a reward for uncertainty and risk. Certain elements of profit are also viewed as additional premiums for risk bearing, or as compensation for aversion to risk for risky industries. It is within the framework of these three views of profit that we will consider the total return due a property/casualty insurance company. Indeed, these views of profit apply to all schemes for assuming fortuitous risk in our economy, whether they involve self-insurance, private insurance, state administered funds, or, for that matter, self-insurance plans.