February 15th, 2011

Chart: Incurred But Not Reported Levels a Measure of Reserving Trends

Posted at 1:00 AM ET

A clue which could point to a shift in reserving trends may be evident in U.S. P&C industry percentage of first year incurred but not reported (IBNR) figures, which, all else equal, is a measure of reserving conservatism. In the chart below, a trend of potentially diminishing conservatism can be seen. It is significant that the industry is, in aggregate, back to levels of around 30 percent - levels previously seen in the last soft market.

fig-14

Click here to view additional charts in GC Capital Ideas’ Chart Room >>

Click here to register to receive e-mail updates >>

AddThis Feed Button
Bookmark and Share


Related Posts