Outstanding Claim Reserves Definition
Outstanding claim reserves provision for the estimated amount of claims that have not been settled. It can be interpreted to include only claims that have been reported, or to include all claims not yet settled.
These are cash reserves held by insurance companies to cover unpaid claims
This is a set aside amount for insurance benefits that have already been claimed by the policyholders but have not been settled yet. It can be said a reserve for Incurred/Reported but not settled liabilities.
Questions Related to Outstanding Reserves
Outstanding claim reserves provision for the estimated amount of claims that have not been settled. It can be interpreted to include only claims that have been reported or to include all claims not yet settled.
Estimates of the outstanding claims reserves can be made on a case by case basis, by using statistical methods, or by using exposure-based reserving.