BANKING AFFAIRS

Detailed explanation-1: -Incurred but not reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims and/or events that have transpired, but have not yet been reported to an insurance company.

Detailed explanation-2: -IBNR stands for Incurred But Not Reported, which refers to the estimate of the liability from claims that have taken place but have not yet been reported to an insurer. While carriers do their best to value incurred claims at the present-day amount, liability claims have the potential to adversely develop over time.

Detailed explanation-3: -The total cost is the claims already paid out plus the incurred but not paid claims, so add these together and divide by the number of members active at each month for which the claims are incurred to calculate the average cost per enrollee per month. The calculations are done in the “Enrollment Data” tab.

Detailed explanation-4: -IBNR means “Incurred but not reported". The term refers to claims not yet known to the insurer, but for which a liability is believed to exist at the reserving date.