Estimating Pure Premium by Layer--An Approach [Discussion]

Mr. Robert J. Finger in his paper "Estimating Pure Premiums By Layer - An Approach" suggests that the log-normal probability distribution function can be used as a model for the distribution of single claim in many instances. Use of the log-normal is based on sound statistical theory and has already been applied to numerous actuarial problems. The "long-tail" evident in liability lines of insurance seems to lead us toward an asymmetrical distribution function like the log-normal. Increased Limits/Excess of Loss, Claim Size Modeling/Loss Distribution, LOB-Medical Malpractice