What does IBNR mean?

What does IBNR mean?

• A. Incurred But Not Reported
• B. Incurred But Not Reconciled
• C. Immediate Benefit Not Reimbursed
• D. Insurance Before Not Reported

Answer: (A)

IBNR stands for Incurred But Not Reported. It captures losses that have already happened but haven’t yet been reported to the insurer, so they aren’t in the claims system yet. In reserve setting, this estimates the future claims that will be filed for events that have occurred, ensuring the insurer sets aside enough money to cover those unreported losses. For example, a claim from a recent accident might be filed weeks later; IBNR accounts for that delay. The other options don’t describe this timing gap or use standard insurance terminology, so they don’t fit.

IBNR stands for Incurred But Not Reported. It captures losses that have already happened but haven’t yet been reported to the insurer, so they aren’t in the claims system yet. In reserve setting, this estimates the future claims that will be filed for events that have occurred, ensuring the insurer sets aside enough money to cover those unreported losses. For example, a claim from a recent accident might be filed weeks later; IBNR accounts for that delay. The other options don’t describe this timing gap or use standard insurance terminology, so they don’t fit.