Loss Reserve Adequacy Testing: A Comprehensive Systematic Approach [Discussion]

A model for estimating loss and loss expense reserves is presented in the paper. This model is extensive and the authors are to be commended for their clarity and for the enormous effort required in its preparation. However, some of the concepts of the model may be difficult to extract due to the length of the paper. In my discussion, I shall review a few of the concepts I believe to be fundamental. In addition I shall highlight steps in the application of the model that require particular caution and recommend areas of possible improvement.