ABSTRACT
A n estimate of the dis t r ibut ion of the variable Xt(t) can be made
on the basis of previous c la im experience, al located to underwri t ing
years, and knowledge of the different features of the business. Clear ly
one should take into account inflation, by transforming the monetary
amounts from different years to the same real level. At ten t ion also
needs to be pa id to the run-off of claims and possibly to the discount-
ing of delayed payments. Fur thermore, the relevant distr ibutions
may have been changing and the dis t r ibut ion for business yet to be
writ ten cannot be k n o w n for certain i n advance.
