1. 

   DanielZ Member

   Hi all
   
   In chapter 15, page 14, the notes say that "favourable development" means a reduction in aggregate claims. However straight after that in the answer to question 15.7, "favourable development" is taken to mean *faster* development with shorter reporting and settlement delays.
   
   So could this term mean either of the above?
   
   Thanks

    

   DanielZ, Jan 21, 2015

   #1
2. 

   Katherine Young ActEd Tutor Staff Member

   Yes. You could think of it as either a reduction in amounts or a reduction in uncertainty.

    

   Katherine Young, Jan 25, 2015

   #2

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