An Enhanced Understanding of Using the RAA Excess Casualty Loss Development Study for a Reserve Analysis

This article explores the differences between the various studies published by the RAA over the years. In comparing the reporting patterns for the different lines of business in the RAA study, I attempt to determine what factors can have an effect on the reporting patterns. Based on the data I show that these factors include the underwriting cycle, data quality and data manipulation to minimize the impact of any one company. I also show how the actuary can incorporate this information in using the RAA data in his reserving analysis.

Keywords: RAA, Benchmarks, Underwriting Cycle, Reporting Patterns, Reserving, Reinsurance