Definitions for "Claims Reserve"
Amounts set aside to meet costs of claims incurred but not yet finally settled. An example might be a Workers Compensation case where benefits are payable for several years. At any given point in time, the reserve would be the funds kept based on the estimate of what the claim will cost when finally settled.
The amount of money set aside by an insurer to meet the cost of claims incurred but not yet settled.
An reserve account where money is set aside to meet the costs of paying out a claim that has been filed but not been settled yet.
Claims provision, provision for outstanding claims/claims outstanding, claims reserve, total claim liability.
The amount set by the Insurer is his book of accounts for the settlement of outstanding claims.