Claim settlement rates appear to be flat to perhaps a modest slowdown. Reinsurance Cost of excess of loss and stop loss reinsurance has decreased significantly and is now widely available. In 1993 this coverage was expensive and difficult to obtain. Summary The precise impact of many of these variables on the final reserve need is unknowable at the time of the reserve review. Therefore it is necessary to construct scenarios using plausible ranges for these variables.
Judgment comes into play.
DFA helps us understand and articulate the impacts of the many judgments we routinely make as actuaries. The solution will be published in the Winter Forum.