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

ESTIMATING THE WORKERS COMPENSATION TAIL 671² Percentages of cumulative reported claims still open at the endof each DY are based on recent historical experience.² Estimates of PD claims closed by death are based on SSAmortality tables.² Estimates of PD claims closed for reasons other than death arecalculated as total claim closures less expected deaths.From the above, the percentage of claims available for closurethat closed for reasons other than death was derived fromAY 2002 for the static mortality model. These percentages werealso assumed for the trended mortality model. Consequently, theonly thing different between the two models is the expected numberof claimant deaths during each DY.