Okuzeka
Insurance vocabulary · Insurance Market & Finance

Reserve

Meaning in insurance, with examples

/rɪˈzɜːrv/nounCommon term

In insurance, reserve means: Money an insurer sets aside on its balance sheet to pay claims and other obligations it expects in the future.

In Turkish: karşılık, teknik karşılık, muallak hasar karşılığı

How it is used

Claims handlers set and update a reserve on each file, and actuaries check the total. Types include outstanding claims reserves, unearned premium reserves and IBNR (incurred but not reported). Reserves are increased, released or strengthened.

Example sentences

  1. Please set a reserve of 500,000 lira on the file until the adjuster's report arrives.

  2. The company strengthened its reserves for bodily injury claims.

Common collocations

  • set a reserve
  • claims reserve
  • reserve release
  • IBNR reserve
  • reserve strengthening
  • actuaryA specialist who uses statistics and mathematics to measure risk, calculate premiums and estimate how much money an insurer must keep for future claims.
  • solvencyAn insurer's ability to pay all its future claims and debts, measured by comparing its capital with the amount regulators require.
  • claimA formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.
  • loss ratioClaims costs divided by earned premiums, shown as a percentage; it shows how much of the premium was spent on paying losses.

More terms: Insurance Market & Finance

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This page explains English vocabulary for learners. It is not financial advice.