A claims reserve is the money that is earmarked for the eventual claim payment. The claims reserve funds are set aside for the future payment of incurred claims that have not been settled and, thus, represent a balance sheet liability.What is reserve in insurance?
insurance reserve. noun. : the part of the reserve of an insurance company to be absorbed from the initial reserve in any year in payment of losses — compare investment reserve.What is an insurance reserve?
insurance reserves. Definition. A stated amount or percent of liquid assets that an insurer must have on hand that will satisfy all claims from in-force insurance policies and other outstanding liabilities.