Tapsavsetning

Tapsavsetning is a financial term used to describe a provision set aside to cover expected future losses associated with an entity’s exposures, such as insurance claims or loan defaults. It is recognized as a liability or as a deduction from equity in the balance sheet and affects the income statement through the expense for losses.

In insurance, tapsavsetning refers to loss reserves used to pay future claim costs. This includes reserves for reported claims (case reserves) and for claims incurred but not yet reported (IBNR). Actuarial methods estimate the expected development of claims over time, and the reserves are revised as new information becomes available.

In banking and finance, tapsavsetning covers estimated credit losses on loan portfolios and other financial exposures. Under IFRS 9, for example, entities recognize expected credit losses (ECL) at the time of initial recognition and update them over time as conditions change. Provisions may be lifetime or twelve-month in scope, depending on credit quality and forward-looking information. The aim is to reflect anticipated losses more promptly than an incurred-loss approach.

Regulatory and accounting contexts influence how tapsavsetninger are calculated and disclosed. They are governed by applicable accounting standards and, in many jurisdictions, by prudential rules related to capital adequacy. The accuracy of the estimation depends on historical loss experience, exposure at default, collateral, and macroeconomic outlook, with ongoing adjustments for new information.

See also: reserve, provision, impairment, actuarial estimation.