Hi, In page 17 , allowance for claim monitoring activities for large losses "This is also an important consideration for long-tailed classes where experience early on may look particularly favourable or adverse, which can support reserving decisions to move a selection away from an initial expected loss ratio earlier than usual to reflect experience. The experience emerging could be driven by the mix of claims with case estimates held and being monitored." is my following understanding correct ? for long tail business , if experience look particular favourable then we can make decision to not use IELR when estimating reserves. if later on , there is experience emerged , which mainly driven by mix of claims , we can add case estimate and monitoring the claim development. thank you
I am afraid I don't think your interpretation is quite correct. My understanding is as follows: Based on the actual emerging experience, which could be either favourable or adverse, a decision may be taken to move away from reserving based on an initial expected loss ratio and instead case reserves are held for the known claims which are then closely monitored over time.
