Property-Liability Insurance Accounting and Finance: Liabilities and Policyholders' Surplus

Introductory reserving concepts are defined and discussed, with emphasis on accounting concepts. The long-tailed versus short-tailed nature of various lines is discussed and the concepts of calendar year, accident year, and policy year are introduced. Various techniques used to estimate the ultimate value of known claims are described. A variety of techniques used to evaluate a company’s ability to accurately estimate IBNR are outlined, along with a detailed explanation of the regulatory value of Annual Statement Schedule P.