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completed triangle established by the selection of paid
loss development factors.

b) Reserve Estimate Ranges - Throughout the analysis,
the focus generally remain on obtaining point estimates
of the loss liability/However, it is found that it is
extremely difficult to obtain one single estimate of the
loss reserve liability. Each method results in a different
solution. Further since the mean of a stochastic process
is taken for consideration, the actual result almost always
differ from the estimate.

So, a range of results and the confidence of the analyst
is always preferred, though the insurer's balance sheets
will always continue to require the analyst's supply of
estimates. Working with risk theoretical concepts, it is
possible to develop a model of the reserve inventory, in
terms of frequency and severity. The model can then
be used to develop confidence intervals for the
development of the reserve.

c) Define Liability - An obligation satisfies the definition

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