The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:
This Practice Note explains insurance industry practice in relation to loss reserves, insurance claims data and loss development triangles in general insurance. It also provides information about the significance of this data for insurers and guidance for lawyers regarding the relevance of claims data in insurance disputes. This Practice Note also explains terminology relating to loss reserves, including incurred claims, outstanding loss reserves (OSLR), incurred but not reported (IBNR) and incurred but not enough reported (IBNER).
Life and health insurance reserving is based on very large samples of mortality and morbidity statistics. Setting reserves for life and health insurance tends to be more of a mathematical process than for most types of general insurance. Calculation of life and health reserves are beyond the scope of this Practice Note, which is focused on general insurance.
References in this Practice Note to ‘insurers’ also apply to ‘reinsurers’ unless the context indicates otherwise.
When a policyholder notifies a loss or potential loss under an insurance policy, the insurer will typically make a preliminary assessment of coverage and quantum. On the basis of its preliminary assessment, the insurer will then establish a reserve in respect of the loss. At this point, the loss is recognised as an ‘incurred loss’. The reserve is an estimate of the insurer’s future liability to the policyholder. Reserves for anticipated future claims settlements generally are
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Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For more information, see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?Before the members can vote on a
There may be times when, rather than assigning the benefit of an agreement to a third party, the original parties wish instead to end their obligations to each other under that agreement and, in effect, recreate it, with the third party stepping into the shoes of one of the original parties. This is
This Practice Note identifies the main torts (bar negligence and nuisance, which are covered elsewhere in our related content) and their key characteristics. Specifically:•trespass to land•trespass to the person•privacy/defamation•liability for animals•employers' liability•product
Having established that a duty of care exists (see Practice Note: Negligence—when does a duty of care arise?), it is then necessary to consider whether or not there has been a breach of that duty. This will depend on a number of factors outlined below and considered against the general background of
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