Reserving for Retrospective Returns [Discussion]

I doubt if any of us are thoroughly satisfied with our own company methods for reserving against retrospective returns. Even though we may have taken pains with and given much thought to this problem, it’s the kind of thing we can’t be very sure of and it’s likely to come up for intensive review at least once a year, certainly in preparation for annual statement time. It’s good to be able to compare notes with Mr. Fitzgibbon as he describes and discusses an attractive-looking method used by his company, and also as he points briefly to other reserving methods, perhaps simply to demonstrate his open-mindedness to these other methods, even though enthusiastic about his own. I particularly like one sentence: "A reserve may always be created through USC of ‘judgment’ alone." This shows he does have his feet on the ground.