Allocated Loss Expense Reserves

Little, if any, reference to the problems and methodology of reserving for loss expense has appeared in the Proceedings of the Casualty Actuarial Society. In addition to initiating the publication of some information on the subject, this paper offers a device for the development of formula type allocated loss expense reserves for use in ratemaking. Directed primarily to those casualty lines of business which traditionally require the submission of allocated loss expense with loss in the ratemaking procedure, the theory presented is equally applicable to the determination of statement allocated loss expense reserves for these, as well as other, casualty lines of business where data is of sufficient volume to be credible.