Jerome J. Siewert
Abstract
In this paper I describe several approaches for estimating liabilities under a high deductible program, including a proposal for a more sophisticated approach relying upon a loss distribution model. The discussion addresses several related issues dealing with deductible size and mix, absence of long-term histories, and the determination of consistent loss development factors among deductible limits. In addition, I propose several approaches for estimating aggregate loss limit charges, if any, and the asset value for associated servicing revenue.
Key words and phrases: loss ratio, excess loss, ultimate loss, IBNR, development factors, inverse power curve
Jerome J. Siewert