Actuaries report on ‘compensation culture’

The report, ‘Compensation Culture’, from the Institute of Actuaries’ Working Party chaired by Julian Lowe suggests that of the estimated 1% GDP compensation paid by insurers and companies one third is applied to legal and administrative expenses. This far lower than the 58% in the US where compensation totals in 2000 amounted to US$180bn, 1.8% of GDP.