May 10, 2011
As I work with Workers Comp, I am always watching for fresh resources to manage the issue. I found a new article in the National that adds a fresh perspective.
It says that over the past 20 years, actuarial pioneers have worked to apply modern statistical theories to loss reserves. In practice, however, these ideas have not been widely adopted. New reserve methods on long-tail casualty lines will need to offer demonstrable advantages that override the natural instinct to keep time-tested ways.
Insurers require a solution with proven accuracy and results they can verify and explain. Programming advanced statistical methods may be too time-consuming for individual companies, so commercial software is needed. Up until recently, there haven’t been many practical, cost-efficient solutions available.
You can read the entire articlehere
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