Funds available to the insurer to meet future claims on insurance that has been underwritten. In the UK the reserves must include: the unexpired premium reserve; the unexpired risk reserve; outstanding claims reserve; reserve for claims incurred but not yet reported (IBNR). Common prudence might call for additional reserves, e.g catastrophe reserve.
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The accounting entries in the balance sheet which represent the insurer’s liabilities from the business which has been written. For example, UPR, URR, outstanding claims reserve, equalization reserve, etc. Also, See Also: “Policyholders funds.”