Large Loss Reserving

By: Jerry Provencher

Reserving is risky business. Adjusters hardly ever get credit for a tightly estimated reserve, but nobody escapes the hairy eyeball for a reserve increase. The surest road to loss of client confidence is through stair stepping of reserves. That said, even the largest or most complicated loss can be fairly reserved with a systematic approach.

A systematic approach to establishing reserves, spiced with a healthy suspicion in the extent of damage builds reputation and client confidence.