Gross Incurred Claims (FP2460)

This metric is intended to capture incurred claims, which occur when an insured event has happened for which the insurer may be liable if a claim is made. An insurer is usually not aware of all incurred claims in real time or for a current accounting period.

Incurred claims include all gross paid claims during the period, plus a reasonable estimate of unpaid liabilities. Unpaid liabilities can be calculated as a sum of the change in reserves (including the reserve of claims incurred but not reported), course of settlement reserve, and accrued liabilities reserve.

This metric is used in calculating Incurred Claims Ratio (FP8478), which helps assess the value of an insurance product per premium paid.