Loss Reserving in the Sixties

For some time it has been obvious to the writer that recent loss reserves are not as strong as they were ten or fifteen years ago, This opinion he formed on the basis of loss reserve developments of a handful of selected companies. The steady rise in the bureau development factors used in Private Passenger Auto ratemaking tended to provide additional support for such an opinion. The purpose of this paper is to analyze some industry wide data to determine more closely what has happened to loss reserve safety margins.