Insurance economics

Insurance accounting is generally speaking based upon the idea that a comparison shall be made between “premiums earned” and “claims incurred”. Even if there are exceptions in different countries and in different classes of business the method where premiums earned and claims incurred are compared is so widely used that we will take this method as our starting point for a discussion of the shortcomings, if any, of insurance accounting.The author gave a lecture based on the ideas of this paper to the meeting celebrating the 75th anniversary of the Swedish Actuarial Society, September 7, 1979. The author gave a lecture based on the ideas of this paper to the meeting celebrating the 75th anniversary of the Swedish Actuarial Society, September 7, 1979.