The Hartford 2008 Annual Report Download - page 83

adjust for changes in case reserve adequacy and claim disposal rates.
Auto Liability — Commercial Lines, Package Business and Short-Tailed General Liability. As with Personal Lines auto
liability, the Company performs a variety of techniques, including the paid and reported development methods and
frequency / severity techniques. For older, more mature accident years, management finds that reported development
techniques are best. For more recent accident years, management typically prefers frequency / severity techniques that allow
it to make assumptions about the frequency of larger claims.
Long-Tailed General Liability, Fidelity and Surety and Large Deductible Workers’ Compensation . For these long-tailed
lines of business, the Company generally relies on the expected loss ratio, Bornhuetter-Ferguson and reported development
techniques. Management generally weights these techniques together, relying more heavily on the expected loss ratio
method at early ages of development and more on the reported development method as an accident year matures.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009