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Insurance Claims Reserves Review Checklist

Ensure accurate claims reserves & financial stability. Our Insurance Claims Reserves Review Checklist helps you stay compliant, mitigate risk, and optimize your reserves - all in one easy-to-use template. Download now & safeguard your business!

This Template was installed 3 times.

Data Collection & Validation

1 of 10

Verify completeness and accuracy of data used for reserve calculations.

Date of Loss Occurrence

Claim Number

Loss Type (e.g., Property, Liability, Auto)

Initial Loss Estimate

Description of Loss

Policy Status

Supporting Documentation (e.g., Police Report, Photos)

Loss Ratio Analysis

2 of 10

Evaluate loss ratios against historical trends and industry benchmarks.

Current Loss Ratio

Prior Year Loss Ratio

Industry Average Loss Ratio

Trend Direction (Loss Ratio)

Explanation of Loss Ratio Trends

Earned Premium for Period

Development Pattern Review

3 of 10

Assess the pattern of loss development over time.

Ultimate Loss Ratio (Projected)

Date of Last Development Pattern Analysis

Development Pattern Type

Description of Observed Development Pattern

Average Loss Development Factor (ALDF)

Date of Significant Change in Development Pattern (if applicable)

Explanation for any deviations from expected development patterns

Severity Analysis

4 of 10

Analyze the trend and potential impact of claim severity.

Average Claim Severity (Current Year)

Average Claim Severity (Prior Year)

Percentage Change in Severity

Description of any significant trends in claim severity

Potential Drivers of Severity Increase (select all that apply)

Date of last severity analysis review

Incurred But Not Reported (IBNR) Analysis

5 of 10

Review the methodology and reasonableness of IBNR estimates.

Current IBNR Estimate

Historical Trend of IBNR

Average Period for Claim Reporting

Estimated Claim Reporting Lag (Months)

IBNR Calculation Method

Justification for IBNR Calculation Method

Date of Last IBNR Review

Supporting Documentation (e.g., actuarial reports)

Discount Rate Assessment

6 of 10

Evaluate the appropriateness of the discount rate applied to future payments.

Current Discount Rate (%)

Rationale for Current Discount Rate

Yield on Relevant Benchmark Securities (e.g., Treasury Bonds)

Date of Benchmark Rate Determination

Explanation of Any Deviation from Benchmark Rate

Methodology for Discount Rate Selection

If 'Other' selected above, please specify methodology.

Legal & Regulatory Compliance

7 of 10

Ensure compliance with relevant accounting standards and regulatory requirements.

Applicable Accounting Standards

Regulatory Reporting Requirements

Last Regulatory Exam Date

Permit/License Number

Summary of Recent Regulatory Changes

Copy of Regulatory License

Documentation & Audit Trail

8 of 10

Confirm adequate documentation supports reserve decisions and allows for auditability.

Date of Reserve Review

Summary of Review Findings

Review Methodology Used

Supporting Documentation (e.g., spreadsheets, reports)

Reviewer Signature

Total Page Count of Supporting Documents

Sensitivity Analysis

9 of 10

Perform sensitivity analysis to assess the impact of key assumptions on reserve estimates.

Loss Ratio Increase/Decrease (%)

Claim Severity Increase/Decrease (%)

Discount Rate Change (%)

IBNR Estimate Variance (%)

Assumption Type

Impact on Reserve Amount (USD)

Management Review & Approval

10 of 10

Document review and approval by relevant management personnel.

Review Date

Summary of Review Findings

Overall Assessment

Reserve Adjustment Percentage (if applicable)

Reviewer Signature

Reviewer Name

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