PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

656 ESTIMATING THE WORKERS COMPENSATION TAILAPPENDIX BHISTORICAL PLDFS FORALL OTHER WORKERSCOMPENSATIONThis section presents SAIF’s historical PLDFs for MPD lossesas well as workers compensation losses other than MPD. The averagesof the latest five PLDFs are shown for each developmentyear in Table B.1. These factors are counterparts to the MPDPLDFs shown in Table 1.1.The 37 to ultimate tail factor indicated for other workers compensationis 1.039. In Oregon, escalation of indemnity benefitsis paid out of a second injury fund. The Other Workers Compensationdevelopment factors do not include the escalation ofindemnity benefits. The Other than MPD tail factor of 1.039 canbe compared to the MPD tail factor of 1.581. These tail factorscan be derived from Table B.1 by cumulating backwards.It is medical losses that contribute significantly to the tailfactor and it is the medical cost escalation component of themedical tail factor that contributes significantly to the medicaltail factor. Without medical cost escalation, the medical factordrops from 1.581 to 1.030 when put on a current cost basis.The above PLDFs serve as the basis for the tail factors presentedin Table 2.4.