1. The E.D.P. system which has been developed in the author's company a few years ago was based on the use of a small wired computer with a storage capacity of 30 words of 12 decimals each for data to be processed and (intermediary) results and with a practically unlimited capacity as regards the length of a programme because of the possibility of cardprogramming (48 instructions on each card). The system which in the meantime has been fully realised includes : manually punching of all data given in an application form for a new policy or in a similar internally prepared document with regard to an alteration, conversion or exit of an existing policy and automatically (a) producing of (new) policy record punched cards serving for printing a policy (if necessary) and to be filed for future use, (b) producing of punched cards for renewals, (c) idem for payment of agency commission and (d) of cards containing constants for valuation purposes, (e) updating valuation totals and totals of the accounts for surplus analysis as well as statistical totals. All data in the cards i.e. agency commission, Altenburger constants to be calculated from first principles.
2. Since a computer is available with much higher capacity (operation speed ± 64 microsec. for short operations, 500 microsec. for multiplication and division, storage capacity for data and programmes up to more than 30,000 words of 27 bits each, possibility of connecting the computer with a group of punched card machines and with a high speed photoprinter, if needed magnetic tape equipment) a new system has been developed which is based on the following assumptions :
(a) it is possible not only to do all calculations by aid of an electronic computer, but also the part of the daily work, which consists of the interpretation (in daily case work as it is centralised at the head office of the author's company) of the rules contained in a policy and its clauses ;
(b) it is possible to store information contained in or connected with a policy (including historical data) with the aid of a compact coding system on about two and a half punched cards ;
(c) it is possible to use the cards mentioned under (b) for monthly renewals, because of the given speed of the connected reading unit. This leads to the following general structure of data-processing :
(a) interpreting of the content of incoming letters and copying with the aid of a typewriter-tape punch this content on a form in a code adapted to the automatic data handling of the computer, producing simultaneously punched tape, (b) selecting the punched cards of the policy involved from the only existing consolidated file, (c) data-processing in the computer and producing automatically all documents needed.
3. The system of compact coding has been based on the possibility in the computer to interpret any combination of binary units. Since in this type of storing information data have no fixed localisation the normal programming system where operands are supposed to be found in a known address has to be adapted.