https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ACase_reserveDefinition:Case reserve - Revision history2026-06-13T23:45:32ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Case_reserve&diff=6726&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T04:43:30Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📋 '''Case reserve''' is the specific dollar amount set aside by an [[Definition:Insurance carrier | insurer]] for an individual reported [[Definition:Claims | claim]], representing the adjuster's best estimate of the ultimate cost to settle that claim. Each time a new loss is reported, the [[Definition:Claims adjuster | claims adjuster]] or [[Definition:Claims examiner | examiner]] evaluates the facts — injury severity, coverage applicability, litigation status, and other factors — and posts a reserve to the insurer's books. Unlike [[Definition:Incurred but not reported (IBNR) | IBNR reserves]], which address claims that have occurred but have not yet been filed, case reserves deal exclusively with known, open claims.<br />
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🔍 Adjusters set initial case reserves based on available information at the time of the first notice of loss, then revise them as the claim develops — medical reports come in, legal strategies shift, or new damages surface. In [[Definition:Workers' compensation insurance | workers' compensation]], for instance, a case reserve might start modestly for a minor injury but balloon if the claimant develops complications requiring surgery and extended rehabilitation. Aggregate case reserves across the entire book feed into the insurer's [[Definition:Loss reserve | loss reserve]] balance on the [[Definition:Balance sheet | balance sheet]], alongside bulk and [[Definition:Incurred but not reported (IBNR) | IBNR]] estimates. [[Definition:Actuarial analysis | Actuaries]] monitor the pattern of case-reserve development — known as the "development triangle" — to calibrate broader reserve adequacy.<br />
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⚠️ Accuracy in case reserving has outsized consequences. Under-reserved claims erode [[Definition:Surplus | surplus]] when they eventually settle above expectations, potentially triggering [[Definition:Rating agency | rating agency]] downgrades or [[Definition:Regulatory action | regulatory scrutiny]]. Over-reserving, while conservative, inflates reported [[Definition:Loss ratio (L/R) | loss ratios]] and suppresses apparent profitability, which can distort pricing decisions and mislead [[Definition:Reinsurance | reinsurers]] relying on ceding company data. For [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Third-party administrator (TPA) | third-party administrators]] handling claims on behalf of carriers, demonstrating disciplined, well-documented case reserving practices is essential to retaining [[Definition:Delegated underwriting authority (DUA) | delegated authority]] and building trust with capacity providers.<br />
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'''Related concepts'''<br />
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* [[Definition:Loss reserve]]<br />
* [[Definition:Incurred but not reported (IBNR)]]<br />
* [[Definition:Claims adjuster]]<br />
* [[Definition:Reserve development]]<br />
* [[Definition:Loss adjustment expense (LAE)]]<br />
* [[Definition:Actuarial analysis]]<br />
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