Loss Reserves

Definition of "Loss reserves"

Rebecca Jones Gutierrez
Rebecca Jones Gutierrez Keller Williams Realty Augusta Partners

Provision for known claims due but not paid, known claims not yet due, and provision for incurred but not reported (IBNR) claims. The critical problem facing a casualty insurance company is the amount of reserves necessary for the incurred but not reported losses (IBNR) because many of these claims and their resultant settlements may not manifest themselves until several years in the future. This is known as the tail end distribution liability.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ