In a 2009 Society of Actuaries’ monograph by Chadick, Campbell and Knox-Seith (Chadick), a detailed comparison of various medical liability (IBNR) calculation methods is made. Chadick shows that, based on their statistical analysis, there will almost always be some restatement. Chadick states: “Finally, it is important to note that ultimately the best method or combination of methods to use in a particular situation may be dependent upon factors and actuarial judgment that cannot be tested through a scientific model” (Chadick, page 6).  While management may continually inquire about the level of restatement, the actuary is aware that restatements will not go away.  This paper’s focus is on the management of the IBNR process.

The paper is organized as follows:

• The problem of IBNR restatement is discussed.
• An example showing how recent market changes need to be incorporated into monthly IBNR calculations is presented.
• An outline of a management process of IBNR is shown.
• Effective strategies for presenting IBNR results are discussed.

This information will be presented as both a paper and presentation at ICA 2014.  The goal of the paper and presentation is to strengthen actuaries’ management skills in the IBNR process and to share best practices among actuaries attending the presentation.