The use of case reserves in actuarial development triangles is ubiquitous. Many of the problems encountered in loss reserving stem from systematic changes and inaccuracies in the determination of case reserves. Case reserves currently serve two primary roles – to facilitate the appropriate settlement of each claim, and to provide financial information. These goals are intrinsically at odds with each other.

As a profession, we need to move beyond the use of subjectively determined case reserves to using case reserves that are more appropriate for loss reserving, that we have constructed directly, using objective claim and exposure information. During this session we will discuss how the separation of the dual roles of case reserves will benefit not only the actuaries in their reserving and pricing work, but also the claim settlement function.