IBNR is an estimate for claims arising from events that have occurred but are not yet reported, within the reporting methodology.
The distinction that matters
It is not a list of known claims or a guarantee that actual future payments equal the estimate.
What to check
- Check valuation date and assumptions.
- Review claim development.
- Compare gross and net measures.
Example to discuss
A long-tail portfolio may require estimates for events not yet notified to the insurer.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
Use the definition in the report being analysed. Changes in business mix, reinsurance, estimation and reporting methods can affect interpretation. These measures do not determine whether an individual claim is covered.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.