Finance English
Insurance

What is Expense Reserve?

Expense Reserve A liability set aside by an insurer to cover anticipated future administrative and claims adjustment expenses related to policies in force.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Expense Reserve” Used in Practice?

The company increased its expense reserve to account for rising claim handling costs under new regulatory requirements.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Expense Reserve?

A liability set aside by an insurer to cover anticipated future administrative and claims adjustment expenses related to policies in force.

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