Insurance Glossary

Loss Reserve

Industry

Definition

Funds set aside by an insurance company to pay future claims that have been reported but not yet settled (case reserves) or that have occurred but not been reported (IBNR).

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Related Terms

IBNR
Incurred But Not Reported - reserves set aside for insurance claims that have occurred but have not yet been reported to the insurer.
Actuary
A business professional who analyzes probabilities of risk and risk management, including calculation of premiums, dividends, and other applicable insurance industry standards.
Loss
The basis of a claim for damages under the terms of an insurance policy.
Underwriting
The process by which an insurer evaluates the risk of insuring a person or property and determines coverage terms and premium rates.
Reinsurance
Insurance purchased by insurance companies to transfer portions of their risk portfolios to other insurers, reducing the likelihood of large payouts from claims.
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