Case Estimates and Large Claims

Question 1

What should the member consider where case estimates are used as a component of the TPs?

Answer 1

How the case estimates compare to exected future claim payments

Question 2

How should the member determine the value of case estimates?

Answer 2

Using generally accepted actuarial techniques

Question 3

How can the case estimates be assessed qualitatively?

Answer 3

By consulting those responsible for the case estimates

Question 4

What should be done when adjusting valuation assumptions to allow for the use of case estimates?

Answer 4

1. Care should be taken in using information from those responsible for the case estimates as well as the result of any analysis used
2. Any such adjustments should be documented