Incurred Claims
Incurred claims
Incurred Claims is an estimate of the amount of outstanding liabilities for a policy over a given valuation period. It includes all paid claims during the period plus a reasonable estimate of unpaid liabilities. It is calculated by adding paid claims and unpaid claims minus the estimate of unpaid claims at the end of the prior valuation period.
Components
Benefits paid during the reporting period and Change in Outstanding reserves during the period
Calculation
Benefits paid during the reporting period + (Total reserves at the end of the reporting period – Total reserves at the beginning of the reporting period)
Related Questions
Incurred Claims is an estimate of the amount of outstanding liabilities for a policy over a given valuation period. It includes all paid claims during the period plus a reasonable estimate of unpaid liabilities. It is calculated by adding paid claims and unpaid claims minus the estimate of unpaid claims at the end of the prior valuation period.
Benefits paid during the reporting period + (Total reserves at the end of the reporting period – Total reserves at the beginning of the reporting period)
Total reserves at the beginning of the reporting period – Total reserves at the end of the reporting period
