reserverisk
Reserverisk is a term that describes the potential for losses arising from holding a company's or an insurer's reserves. Reserves are funds set aside to cover future liabilities or claims. For an insurance company, reserves represent the estimated amount of money needed to pay out future claims on policies that have already been issued. For other businesses, reserves might be established for anticipated expenses, legal settlements, or other future obligations.
The risk associated with these reserves lies in the possibility that the actual costs incurred will be
If the reserves prove to be inadequate, the entity holding them may face financial difficulties. This can