Incurred but not Reported Claim Reserves

The subject of reserves for incurred but not reported claims has received very scant consideration in our Proceedings, nor is there available to the writer's knowledge any written material of consequence on either the theoretical or practical aspects of the subject. A Committee of the Association of Casualty and Surety Accountants and Statisticians studied the subject in 1927 as respects the fidelity and surety lines and submitted a report recommending that such reserves be determined as a function of premiums in force. Specifically, the Committee recommended the following minimum percentages of in-force premiums: fidelity-10% ; surety--3.5%.