المستخلص: |
“The technical reserves represent the principal liabilities of an insurance company. They are established to enable the company to meet and administer its contractual obligations to policyholders'. Specific reserves are required to meet indemnity or other compensatory payments to ‘policyholders plus the associated administration costs. In addition, reserves of a contingent nature might be carried (e.g., claims equalization or catastrophe reserves) in order to provide a further buffer against adverse development of claims and to smooth the emergence of profit”. The main financial performance measures used by the stakeholders of the insurance companies depend upon the estimated value of the reserve in each financial period. The reserving process also is a fundamental issue of business management in all insurance activities. The analysis that the reserving process provides from historical claims development and risk exposure can influence the bottom line of the financials and the terms applied on future re/insurance operations and are usually the standard of decision-making, whether to update the risk appetite of the insurance company or to withdraw from insurance business entirely.
|