Insurance solvency reserve definitions standardise claim, premium and unexpired-risk liabilities for international financial service centre insurers.

Claim reserves comprise outstanding claim reserves and incurred but not reported claim reserves. Outstanding claim reserves cover reported claims outstanding at the accounting date and include allocated loss adjustment expenses. Incurred but not reported claim reserves include reopened claims, unreported claims, claims in transit, allocated loss adjustment expenses, and reserves for expected changes in reported-claim estimates. Unexpired risk reserves consist of unearned premium reserves and premium deficiency reserves for anticipated insufficiency in meeting claims and related expenses.

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