A User-Friendly Introduction to Property-Casualty Claim Reserves

Property-casualty (P&C) claim reserves are financial statement liabilities that represent estimated future claims. An understanding of P&C reserves is important to both risk managers and investment analysts, since this information is crucial in assessing solvency and value. We review some basics of P&C reserves, and add some of our own thoughts, in a way that tries to be user-friendly for practitioners and students.