Allocated Loss Adjustment Expense Reserves

In recent years, allocated loss adjustment expense reserves have grown significantly relative to loss reserves for many lines of business. This panel will review several methods for reserving allocated loss expense. The merits of establishing individual case reserves for allocated loss expense will also be discussed, including the impact on a company’s claim system. Discussions will include shift in attorney reimbursement procedures, increase use of in-house attorneys and alternate dispute resolution, and other issues related to litigation management. Recent trends in industry ALAE reserves will also be reviewed.