The Hartford 2008 Annual Report Download - page 81

Compared to the paid development technique, the reported development technique has the advantage that a higher
percentage of ultimate losses are reflected in reported losses than in cumulative paid losses. The reported development
technique estimates only the unreported losses rather than the total unpaid losses. While the reported development technique
takes advantage of information contained in the case reserves, estimates determined from this technique are affected by
changes in case reserving practices.
Both paid and reported development techniques assume that historical development patterns are predictive of future
development patterns.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009