ROC Working Party:

Towards the Optimal Reserving Process

The Fast Close process

by Neil Bruce (Chair), Alastair Lauder, Cameron Heath,

Camilla Bennett, Chi Wong, Gregory Overton, Joe Ryan,

Katherine Laidlar, Keith Taylor and Tim Jenkins

GIRO 2014

Abstract

Our principle focus in this paper is on ways that a Fast Close process (or indeed any

reserving process) can be structured to maximise the value added within the process

given the time and resource available. This builds on the use of actual vs. expected

techniques we investigated in our previous paper, and also looks at forces external

to the reserving function that may derail smooth progress. We highlight a number of

practical ways that the balance can be restored in favour of adding value rather than

crunching numbers. This paper forms the second in the TORP series.