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Journal of Actuarial Practice (1993–2006)

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Date of this Version

1996

Document Type

Article

Citation

Journal of Actuarial Practice 4 (1996), pp. 179-207

Comments

Copyright 1996 Absalom Press

Abstract

In this paper I describe several approaches for estimating liabilities under a high deductible program, including a proposal for a more sophisticated approach relying upon a loss distribution model. The discussion addresses several related issues dealing with deductible size and mix, absence of longterm histories, and the determination of consistent loss development factors among deductible limits. In addition, I propose several approaches for estimating aggregate loss limit charges, if any, and the asset value for associated servicing revenue.

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