Distortion in IBNR Factors [Discussion]

This actuarial note lives up to Mr. Simon’s reputation for pertinent and handy mathematical models. In addition to providing a workable solution for a specific problem, it clearly illustrates the general technique of projection by geometric areas. This is a common method of modeling a variety of small actuarial problems, but one which is easy to mishandle in practice. Those actuaries who infrequently do this kind of thing should find it beneficial to follow the pattern of mathematical development in this paper, but substitute the precise values and formulas for their own problems as they go. For students, this paper is a "must."