Third, non- quantifiable factors such els the underwriter's 

 judgment, owner-crew relations, the structtire of the insurance market, 

 and the existing legislation are of great importance in the interpre- 

 tation of the data. As a consequence, a difference between two sample 

 figures may not be significant statisticauLLy, but still may be highly 

 indicative of important relationships. This fact is especially true 

 where there is consistency of response to certain questions and a 

 marked general agreement with the experience of leading insurance 

 companies in a geographical area. 



Fourth, although it can be shown that the samples are reliable, 

 it should not be forgotten that sampling has supplied us with compre- 

 hensive statistics, not with actuarial statistics. This distinction 

 is particularly important with regard to loss experience of the sampled 

 insurers. Sample statistics on loss experience are indicative of the 

 general situation in each geographical area for the period 1950-5^ as 

 a whole. Yearly deviations of sample loss experience from the actuariaJ. 

 statistics are likely to be more pronounced than deviations for the 

 period as a whole. Similarly, the actuarial experience of individual 

 insurance companies may differ markedly from the market experience 

 indicated by the sample. Such differences clearly are due to the 

 Individual insurer's position in the mcirket as determined by the pro- 

 portion of insurance policies written by him and the adverse or 

 favorable selection of risks during the period under study. 



Fifth, this report is not an aimless compilation of a body of 

 information about insurance experience of commercial fishing vessels 

 in the New England, Gulf and CsuLifornia Areas. It is a systematic 

 anauLysis of the collected information for the specific piirpose stated 

 above. Accordingly, in carrying out this objective, the report is 

 presented under the following conditions: 



a. The report is written from the viewpoint of the vessel 

 owner \riio faces the rising cost for adequate insurance protection. 

 The analysis may be useful to the insurance people in many respects, 

 but from an individual company's viewpoint it may not be adequate in 

 all respects. 



b. The general experience is analyzed in this report rather 

 than a particular portion of the problem such as the insxirance problem 

 in a specific fishing port or the experience of a specific insurer. 



c. Our findings and recommendations are addressed to the 

 United States Government for the purpose of laying down the foundations 

 for policy-making decisions. Therefore, the report is neither designed 

 nor written for popular consumption. 



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