Hi,
Hope someone can help me with the following context
- page 22 : about claims made basis , suggested "some cases it will also cover an extended reporting period, particularly on renewal of coverage" . why ? usually policies written on "claim basis" are liability product , which one claim reported may lead to significant increase in the premium, may one of reason why employer's liability is on Loss occurring basis. so offering extended reporting period is benefiting insurer / 3rd parties ?
- page 28: about "redundant outstanding":
"If the development pattern is used to project future claims for other years, we should be careful to ensure that the underlying assumptions are still valid. At the very least these link ratios could be excluded from selections, but more actions may be needed to ensure further savings are not projected if the development pattern allows for them to gradually release." , is my understanding correct regarding this paragraph :

Hope someone can help me with the following context
- page 22 : about claims made basis , suggested "some cases it will also cover an extended reporting period, particularly on renewal of coverage" . why ? usually policies written on "claim basis" are liability product , which one claim reported may lead to significant increase in the premium, may one of reason why employer's liability is on Loss occurring basis. so offering extended reporting period is benefiting insurer / 3rd parties ?
- page 28: about "redundant outstanding":
"If the development pattern is used to project future claims for other years, we should be careful to ensure that the underlying assumptions are still valid. At the very least these link ratios could be excluded from selections, but more actions may be needed to ensure further savings are not projected if the development pattern allows for them to gradually release." , is my understanding correct regarding this paragraph :
- if same development pattern (which contain redundant O/S) then need to make sure future practices are the same as the past;
- however, it is then suggested those generate reserves reduction link ratio should be excluded ? why ? if the future practise is remain unchanged.
- more confusing it the last part: why more action need to ensure further savings are not projected ? if the first sentence suggested dev pattern can be use if future practices are the same as the past?