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The Insurance Times
occurrences reported during a particular period,
since all claims associated with an occurrence may
not be reported at the same time. The unreported
occurrence/claims reserve is the true IBNR
(incurred, but not reported) reserve.
Reported losses refers to the sum of payments plus
case reserves. Unreported losses refer to the case
reserve development plus unreported occurrences/
claims reserve. Incurred losses refer to the sum of
reported and unreported losses. Case reserves are
sometimes used when reported losses are meant.
Many entities refer to reported losses as incurred
losses, and unreported losses as IBNR.
(f) Frequency and severity - Frequency is the number
of occurrences or claims per exposure unit.
Frequency is a relative, not an absolute measure.
Severity is the average loss per claim.
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