THE TUSCAN" FEDERATION FOR MUTUAL INSURANCE 2"] 



rience which are of the highest value to students of this important branch 

 of agiicultural mutuality. 



An example of simple federative grouping which has no provision for 

 reinsurance or for compensation for risks, is afforded by the Federazione 

 Provinciate delle Muiue Bestiame of Aqnila, founded a few years ago. 



Subsequently at the beginning of the war there were constituted at 

 Genoa, by the efforts of the office of Agricultural Mutuality, the Federazione 

 Regionale Ligurc (Regional Federation of Liguria), and at Alexandria, 

 on the kindly initiative of the provincial administraticin, the Istituto Pro- 

 vinciale Autonomo di Riassicurazi-me del Bestiame (Autonomous Provincial 

 Institute for the Reinsurance of Live Stock). 



The Tu.=:can Federation, already mentioned, is thus the sole institution 

 of its kind in Italy, and, as has been said, it hav recently completed its first 

 year of bubiness. 



In this district there are forty-three mutual live stock societies, of 

 which nineteen charge fixed annual premiums and have regular admi- 

 nistrations. The others work on the principle of share-quotas and have 

 more or less rudimentary administrations, 



The technical and administrative organization of the federation with 

 which we are concerned is based on the reinsurance of a portion of the risks 

 of single mutual societies, they being enabled to reinsure a quarter or a 

 half of their total risks. In the former case a society pays to the federal 

 fund 25 per cent, of its annual premiums and the federation intervenes when 

 each casualty occurs, paying an indemnification quota equal to 2^ per cent, 

 of the loss for which the mutual society becomes liable ; in the second case 

 a society pays to the federal fund 45 per cent of its annual premiums and 

 the federation intervenes to pay 50 per cent, of each loss incurred. 



However the various societies, even if they are severally active in al- 

 most identical surrounding conditions, are subject to different risks accord- 

 ing to the greater or less attention which is paid to hygiene, the prevalence 

 or otherwise of milch-cow? among insured animals, the greater or le.ss 

 watchfulness of administrators, etc. ; and therefore some are a greater 

 source of expense to the federal fund than others. 



At present, in order at least partly to eliminate this unequality which 

 might be an eventual source of discontent among the best organized so- 

 cieties and those wh;ch worked most regularly, there is an annual distribu- 

 tion of profits which have eventuated among those societies which are out 

 of pocket through their dealings with the federation. Thus while at the 

 end of every financial year half the profits go to the reserve fund, the other 

 half are restored, according to a determined scale, to the societies which have 

 paid more than they have received. 



The amount of the profitr accruing to each society is deducted from the 

 premiums due in the next year, so that the federated society pays for rein- 

 surance in that year only the difference between such amount and the nor- 

 mal reinsurance premium. 



The federated societies preserve their autonomy, being merely obliged 

 to allow the inspection of their technique and administration. 



