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a) The traditional actuarial reserving techniques were
distinct, both from each other and from classical
statistical analysis. Actuaries used chain ladder
methods and expected loss methods; statisticians
used regression analysis and Bayesian analysis.

b) The traditional reserving techniques presume that
past history is a model for the future.

c) Reinsurance actuaries have turned to modeling for
both pricing and reserving.

d) Perhaps the most fertile field of new actuarial
reserving analysis lies in stochastic simulation. The
traditional reserving procedures are deterministic;
they indicate "best-estimate" reserves, assuming no
change in the insurance or financial environments.

24. Dynamic financial analysis is sweeping across the
property-casualty insurance landscape, overturning
traditional notions of surplus adequacy, and leaving in its
wake sophisticated models of financial performance.

25. There are different ways to categorize risk. The two
most common are "objective" versus "subjective" and
"pure" versus "speculative".

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