Adjusting Loss Development Patterns for Growth, [Discussion]

Mr. McClenahan presents a method that can be very useful when there has been a recent, significant change in exposure. The average accident date in the most recent accident year may be considerably different from what it was for previous accident years at the same stage of development. Both loss reserving and pricing decisions can benefit greatly from an accurate estimate of the effect of changing exposure on loss development patterns. For a method that is so simple, the one presented by Mr. McClenahan seems to apply very well to a fairly large portion of the exposure and development patterns encountered in practice.