A broker was clearing out a number of now-redundant brochures for Independent Insurance when he found this little gem under the heading “accuracy of reserves”.

“Accuracy of reserving is of paramount importance,” says the brochure, called The Independent Difference. “It allows us to make adequate provision for our potential liabilities and it means our policyholders can be confident that the premium they pay accurately reflects their true claims experience.”

So far, so good. But it continues: “In order to gauge the size of reserves we require, we are constantly updating our knowledge of the risks on cover, assessing potential liabilities and monitoring developing situations.”

Ah, what a wonderful gift is hindsight.