Which method of establishing reserves involves consensus among multiple claims reps?

• A. Expert system method
• B. Average value method
• C. Roundtable method
• D. Formula method

Answer: (C)

Roundtable method emphasizes collaborative judgment among several claims representatives to set reserves. In a roundtable, each adjuster shares their reserve estimate and the reasoning behind it, and the group discusses uncertainties, potential exposures, and development patterns until they converge on a single reserve figure that everyone supports. This approach is especially useful when data are sparse or a claim is complex, because it blends diverse perspectives and reduces individual bias, leading to a defendable, consensus-backed reserve. The other methods rely on different mechanisms: an expert system method uses software-driven rules, the average value method simply averages estimates without a formal group negotiation, and the formula method applies a predetermined calculation based on inputs and historical data.