Reserves

Summary of Reserves

In insurance industry usage, funds set aside to satisfy claims which have arisen but not yet paid. Such reserves fall into two categories: (11 Those arising from claims made upon the insurer but not yet actually paid; and (2) claims which have been incurred but not yet reported. In the latter case, depending upon the type of risk insured, considerable time may pass between the occurrence of a loss and the reporting of that loss to the insurer. This span of time, known as the “tail,”may run several months or even years. During that period, the insurer remains financially obligated for the loss. In order to put aside enough money to cover such eventual settlements, insurers create reserves for “incurred but not reported losses.”The actual amount of such reserves is computed by actuaries and other experts, relying upon past claims experience and other factors. In most countries, the amount so projected is considered a current expense for income tax purposes.

(Main Author: William J. Miller)

Hierarchical Display of Reserves

Business And Competition > Management > Management
European Union > EU finance > Drawing up of the EU budget > Budgetary discipline (EU) > Budgetary reserve (EU)

Reserves

Concept of Reserves

See the dictionary definition of Reserves.

Characteristics of Reserves

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Resources

Translation of Reserves

• Spanish: Reservas
• French: Réserves
• German: Vorrat
• Italian: Riserve
• Portuguese: Reservas
• Polish: Rezerwy

Thesaurus of Reserves

Business And Competition > Management > Management > Reserves
European Union > EU finance > Drawing up of the EU budget > Budgetary discipline (EU) > Budgetary reserve (EU) > Reserves

See also

• Budgetary reserve (EU)

• Special reserve
• Technical reserves