Estimation of the Distribution of Report Lags by the Method of Maximum Likelihood, [Discussion]

Perhaps the most important contribution the actuarial profession can make to the industry which it serves is the representation of complex insurance phenomena by means of coherent mathematical models. The intelligent formulation of a mathematical model tends to strip away much of the mystery surrounding a given insurance problem. It makes explicit the many assumptions that may be taken for granted in less rigorous approaches. It allows the actuary to make verifiable numerical statements about the most convoluted of insurance problems by building in logical progression upon basic mathematical foundations. Most importantly, though, it aids the actuary in his future research by prompting him to ask the correct questions about the issue under study. For these reasons, Ed Weissner’s modelling of the report lag phenomenon is a worthy addition to our Proceedings.