A figure used by insurers to take into account a reserve they hold for claims which have been incurred but have not yet been reported to the insurer. In the event of termination of the plan, claims incurred during the term of the policy would still be paid even if submitted after the fact.
All claims with dates of service within a specified period.
A term that refers to the actual carrier liability for a specified period and includes all claims with dates of services within a specified period, usually called the experience period. Due to the time lag between dates of services and the dates claims payments are actually processed, adjustment must be made to any paid claims data to determine incurred claims.
Incurred claims equal the claims paid during the policy year plus claim reserves.
The total amount paid on claims plus any outstanding reserves (expected future payments).
Claims paid during the policy year plus the claim reserves as of the end of the policy year, minus the corresponding reserves as of the beginning of the policy year. The difference between the year-end and beginning-of-the-year claim reserves is called the increase in reserves and may be added directly to the paid claims to produce the incurred claims.
It equals the claims paid during the policy year plus the claim reserves as of the end of the policy year, less the corresponding reserves as of the beginning of the policy year.
Refers to the accrual method of accounting for all known and unknown claims. Includes paid claims plus adjustments for claims reported but not yet paid and those incurred but not reported.
The total of paid and outstanding claims.