Reserve for outstanding claims

 

The provision set aside for the payment of insurance claims that have been made and for which the insurer is liable, but which have not yet been settled at the end of the reporting period

Reserve for outstanding claims includes the amount of insurance claims that have been unsettled by the end of the reporting period but reported (insurance claims that are accepted by an insurance company) and the amount of insurance claims that have already been incurred but yet reported.

Related Term