Reserving problems encountered in general liability business in the USA

Document description

Actuaries in the U.K. have, no doubt, personally encountered or been shocked by great losses caused by upward development in U.S. general liability reserves, especially products liability. Don't feel alone. Many U.S. insurance executives badly miscalculated the reserves and pricing necessary for general liability as the line grew rapidly into a major line of business beginning with the "products liability crisis" in 1974 and continuing through the 1980's.The goal of this discussion and paper is to share examples and data collected from seventeen years personal involvement in general liability reserving in the U.S. Perhaps some of what is presented will be useful as a point of reference and help the reader avoid underestimating loss development and avoid analysis pitfalls into which many have fallen.