^8 GERMANY - INSURANCE AND THRIFT 



which seems to them excessive before the}' arc face to face with the dreaded 

 occurrence of a casualty. It is this state of mind which it is attempted to 

 combat. 



The federation makes a point of the insurance of cattle up to their full 

 value, even when this has been increased, because only thus can the eco- 

 nomic aim be fully realized. 



Premiums : 



Two per cent, has generally been exacted during the first period of 

 insurance. This rate has been universally applied to newly founded societies, 

 but in the case of old societies already' adherent to the federation it has 

 been possible from the beginning to charge a lower rate. 



It is probable that after the first period and at the end of each succeed- 

 ing one the level of premiums will be quite different in the different soci- 

 eties : it varies according to the measure in which the societies have had to 

 bring the federation under contribution during the past period of insurance. 

 The societies which, thanks to good farming, have gone onh' a very 

 little beyond that normal rate of casualties for which the federation 

 compensates to the extent of four fifths, or have had no casualties at aU 

 to register, can count on a reduction of the premium bringing it below 

 two per cent. On the other hand those which have not been able to 

 make up for the various 3'ears during which the}- went be3'ond the normal 

 rate, by economies in other years during which the}'' did not reach it, 

 must face the prospect of increased premiums in the succeeding period of 

 insurance 



Casualties ; 



In 1915 indemnities were paid for thirt^'-nine animals, that is 3.60 per 

 cent, of the total number insured, as against thirty- two or 2.66 per cent, in 

 1914. Of these thirty-nine animals twenty were slaughtered. The gross 

 sum of the indemnities was 9,686.90 marks or 80 per cent, of the insured 

 value. The sum realized for the slaughtered animals was 3,265.85 marks 

 or 33.04 per cent, of the gross amount of indemnities, the net amovint of 

 these being therefore only 6,421.05 marks or 1.74 per cent, of the total 

 value insured. 



In this connection it should be stated that the percentage of the gross 

 sum of indemnities realized from the slaughtered animals was much higher 

 than in the preceding year — 33.04 as against 24.72 per cent. It is suscep- 

 tible however of a yet greater rise in value. 



Experience shows generally that during a quinquennial period an 

 insurance societ}' has one or two good years in which it does not even reach the 

 normal level of casualities, two medium years in which it receives only a 

 little more than the sum which it has to pay out in indemnities, and one 

 or two bad A^ears in which indemnities much surpass the amount of premiums. 

 The differences in the proportion of the profit from enforced slaugh- 



