Trend and Loss Development Factors [Discussion]

Possibly Mr. Cook’s strongest motivation for writing this paper was the increasingly householdish term “overlap.” Discussions of loss development factors relative to other type factors intended to project for cost or frequency trends often have been colored by concern and confusion, whether there might be overlap between these. That is, to the extent development factors may at least partially arise from inflationary or otherwise assignable cost trending influences, and these same influences also may be applied as rate level trending factors, there may be duplicative effects. If Mr. Cook were to accomplish nothing other than a clarification of the muddiness of these discussions, which he has done, his paper would be a worthwhile addition to our Proceedings; he has, in fact, proceeded further to the examination of quite a few other concepts necessary to intelligent handling of various kinds of experiences and approaches useful for rate level work.