A loss reserve is an estimate of the value of a claim or group of claims not yet paid.
"Schedule P" reserve
A "Schedule P" reserve is a liability loss reserve relating to the business written by a property-casualty (P&C) insurer that must be shown on Schedule P of the convention blanks required by the National Association of Insurance Commissioners (NAIC).
Additional Information
The purpose of the reserve is to allow for an evaluation of the financial strength of the insurer over a period of time as losses develop relative to earned premium.
Related Terms
National Association of Insurance Commissioners (NAIC) is a trade association of state insurance...
