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amounts associated with closed claims, this method
is often based upon special data surveys.

(ii) Loss development by layer - Another method used
to analyze increased limits experience is to look at
loss development patterns by layer.

This process involves segregating case-incurred
loss data by policy limit and loss layer and then
tracking the observed loss development factors
in each layer. Generally, the scarcity of data in
the upper limits precludes the use of this method.

(iii)Fitted size-of-loss distribution- The third method
is related to the individual loss trending method.
In this method, a theoretical size-of-loss
distribution is fitted to existing individual loss data.
The resulting distribution can then be used to
examine the effects of severity trend on various
limits and as a basis for the increased limits
factors.

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