INCURRED BUT NOT REPORTED (IBNR) LOSSES

Losses that have occurred but have not been reported to the insurer as of a particular date, sometimes referred to as “pure IBNR.” Pure IBNR is analogous to claims-made tail. The definition of IBNR is often expanded to include future development on case reserves and loss on reopened claims, sometimes referred to as RBNE (reserved but not enough). The amount of IBNR is typically estimated by a casualty actuary.