Reserving for Asbestos Liabilities

Abstract
Significant uncertainties surround the ultimate costs of asbestos liabilities. The goal of the present work is to provide the actuary with the necessary framework to perform a rigorous analysis of such liabilities. It should be noted that while there is no algorithm that guarantees success, there is a proper approach to the problem. The keys to a rigorous analysis of asbestos liabilities can be summarized as follows:
* Effective knowledge gathering regarding the liabilities of the risk entity under investigation via thorough, open, and constant communication with thus responsible for disposing of those liabilities;
* A commitment to keeping abreast of the global issues in the asbestos litigation;
* The application of actuarial skills, judgment and creativity in designing a flexible and transparent model with well documented assumptions and well communicated interpretation of results.
Volume
Fall
Page
173-212
Year
2003
Categories
Business Areas
Latent Exposures
Asbestos
Actuarial Applications and Methodologies
Reserving
Reserving Methods
Publications
Casualty Actuarial Society E-Forum
Authors
Claus S Metzner
Kevin M Madigan
Documents

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