A company writes employer’s liability insurance. A fellow student has stated that all outstanding claim reserves for employer’s liability insurance should be calculated using case-by-case...

A company writes employer’s liability insurance. A fellow student has stated that all outstanding claim reserves for employer’s liability insurance should be calculated using case-by-case estimates.a) Discuss why you believe that the student has come to this conclusion.b) Explain why using the above suggestion is very unlikely in practice.