Health Insurance Claim Reserves and Liabilities

At the end of 1963 health insurance claim reserves and liabilities held by companies on this continent totaled well over one billion dollars. This paper seeks to study the problems involved in calculating these reserves and liabilities and to describe the methods in use. It takes account of methods used by thirty-one companies. Together, these companies hold about 58 per cent of the industry-wide total of health insurance claim reserves and liabilities. There is great variety in the methods used. This results from the profusion of coverages in force, differences in availability of statistical information to home offices, and differences of opinion as to proper procedures.