Loss Reserves: Performance Standards [Discussion]

Mr. Khury has made a positive contribution to the expanding effort by casualty actuaries to replace over-emphasis on "seasoned judgment" by scientific method, and for this effort he must be congratulated! His paper sets forth an approach for documentation of the actuaries' assumptions as to frequency, severity, inflation, payout patters and the time value of money in an explicit manner. Furthermore, he has introduced a notational system for these expressions so that they can be developed mathematically. We commend him for that effort.