Speed of Finalization of Claims and Claims Runoff Analysis

G. C. Taylor

ASTIN Bulletin, 1981, vol. 12, issue 2, 81-100

Abstract: To some extent, this paper provides theoretical back-up for Taylor's (1980b) see-saw method of analysis of outstanding claims. Section 3 deals with the payments per claim finalized (PPCF) method. This assumes PPCF to be a function of development year only. Section 4 carries out a theoretical investigation of the validity of this assumption. It is found that the assumption is not justified in general; that PPCF can (and usually will) be sensitive to changes in speed of finalization of claims; and that this sensitivity will depend on the convexity properties of PPCF as a function of development year. The analysis is made on the basis of the so-called hypothesis of invariant order. Section 5 develops the see-saw method from this theoretical basis, although Section 7 is at pains to point to situations in which that method remains applicable despite violation of the hypothesis of invariant order. Section 6 provides a numerical example.

Date: 1981
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:astinb:v:12:y:1981:i:02:p:81-100_00

Access Statistics for this article

More articles in ASTIN Bulletin from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().