IBNR stands for

IBNR stands for

• A. Incurred But Not Reported
• B. IBNR (Incurred But Not Reported)
• C. Insured Plan
• D. Mediation

Answer: (B)

Incurred But Not Reported refers to claims that have already occurred and created a liability, but have not yet been reported to the insurer. This means the insurer must estimate and set aside a reserve for these potential claims to reflect the full expected cost in financial statements and pricing. The phrase captures both elements: incurred (the event happened and the insurer could be liable) and not reported (the claim hasn’t been disclosed yet). This is a fundamental idea in claim reserving and loss development, because actual claims often arrive after some delay, and the ultimate cost includes those unseen claims. The other options don’t fit because they describe unrelated concepts or terms not used in reserving.

Incurred But Not Reported refers to claims that have already occurred and created a liability, but have not yet been reported to the insurer. This means the insurer must estimate and set aside a reserve for these potential claims to reflect the full expected cost in financial statements and pricing. The phrase captures both elements: incurred (the event happened and the insurer could be liable) and not reported (the claim hasn’t been disclosed yet). This is a fundamental idea in claim reserving and loss development, because actual claims often arrive after some delay, and the ultimate cost includes those unseen claims. The other options don’t fit because they describe unrelated concepts or terms not used in reserving.