Reserving for Long-Term Disability Claims in a Property and Casualty Insurance Environment: A Hybrid Framework Integrating Tabular Cash-Flow Valuation and Development-Based Diagnostics

This paper examines reserving approaches for long-term disability (LTD) claims and proposes a hybrid framework that combines claimant-level tabular cash-flow valuation with development-based diagnostics. It explores how duration risk, termination dynamics and governance considerations can strengthen reserve estimates for long-duration disability liabilities.