Reserving Issues for Workers’ Compensation

Workers’ compensation presents many difficulties to reserve analysts. In addition to being an inherently long-tailed line of business, workers compensation has recently undergone some significant changes (such as reform legislation, increased use of commutations, etc.) which can affect reserving methods. The panel will discuss these changes and how they should be taken into account. In addition, tabular discounting issues will be covered, including which types of claims may be discounted under new regulations, how the accounting transition rules will work, and techniques for estimating tabular discount on IBNR claims.