Loss Estimates Using S-Curves: Environmental and Mass Tort Liabilities

This paper discusses the application of S-Curve modeling for estimating certain environmental and mass tort liabilities. Emphasis is placed on pollution and asbestos liabilities, which are a significant component of the total environmental and mass tort liabilities for many insurance companies and manufacturers. The general concept of S-Curve modeling is discussed, followed by a technical discussion explaining its applications to asbestos and pollution liabilities. Included are comments on the advantages and disadvantages of the technique. Other keywords: reserving, loss distributions, curve fitting.