Report of Committee on Compensation and Liability Loss and Loss Expense Reserves [Discussion]

The expected loss ratio method of determining loss (and loss expense) reserves as illustrated by "Schedule P" unquestionably served a useful purpose in the earlier years of the present century, particularly as respects the determination of adequate, or reasonably adequate, reserves for the various liability coverages. Its value in establishing proper or even adequate, reserves for the Compensation line, except for a short period following the general enactment of Compensation Acts, has in the mind of the writer been open to question.