Latent claims (1991)

Document description

The report produced by the working party for the 1990 GISG Conference in Newquay described many salient features of latent claims. These claims, that effectively lie dormant for many years then emerge to terrify insurers (and reinsurers), were shown to cause severe problems for accurate reserving and indeed the quantum had the potential to cause financial ruin to the entire insurance industry. This paper follows up on some of the topics raised in last year's paper and also investigates new aspects of latent claims.