A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
I- I. Ia Ib Ic Id If Ig Il Im In Ip Ir Is It

Incurred but not reported losses / IBNR

Losses that are not reported to the insurer or reinsurer until years after the policy is sold. Liability claims may be filed long after the event that caused the injury to occur. The exposure to the chemical that causes cancer may have occurred in 2005, but the injured employee did not report cancer until it manifested itself years later. Asbestos-related diseases, for example, do not show up until decades after the exposure. Also, estimates made about claims already reported but where the full extent of the injury or property damage is not yet known. Insurance companies regularly adjust reserves for such losses as new information becomes available.

Incurred claim reserve

Estimate of insurance claims that actually are incurred in a policy year plus the change of the claim reserves as of the end of the year. The change in reserves stands for the difference between the end-of-the-year and beginning-of-the-year claim reserves.

Incurred claims

Total dollar amount of insurance claims within a specific period of time regardless of when those claims are reimbursed.
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Incurred claims equal the claims paid during the policy year plus the claim reserves as of the end of the policy year, minus the corresponding reserves as of the beginning of the policy year. The difference between the year end and beginning of the year claim reserves is called the increase in reserves and may be added directly to the paid claims to produce the incurred claims. Typically, incurred claim values include some expenses of paying claims such as those allocated to individual claims.

Incurred claims or losses

The total of paid and outstanding claims arising in a period. The term is also used, for the purpose of claims statistics, where, for given accident or policy years, the incurred claims are compared to earned premiums in order to assess the underwriting profitability for each class of business.