loss reserve stability
This expression refers to an actuary's ability to predict future loss reserves
based upon a specific set of circumstances. For example, once a viable risk
retention group (RRG) has been operating for at least 5 years, the collective loss
experience for future periods can be predicted with greater certainty than was
possible for the earlier periods. This is because the majority of the data used
to predict future losses were experienced RRG format,
as opposed to those periods prior to the formation of the group.