Underwriting Profit from Investments, [Discussion]

The inclusion of investment income in the ratemaking process for the casualty lines is a subject which is difficult to consider objectively. An individual's sentiment on the subject seems to depend upon which half of the facts he chooses to rely. Each of us has heard good arguments both pro and con. It is true, of course, that the carriers do have a source of income in addition to the premiums being charged. It is also true that the insured buys financial protection in an effort to stabilize his financial structure rather than to play the securities market.