Search
 

Under Pressure

It is vital that insurers, TPAs, and corporations place great importance on the accuracy and reasonableness of case reserves to provide reasonable estimates for financial reporting purposes.

By Gary Jennings | Updated on January 31, 2010
The Great Recession of 2009 has profoundly affected corporate America, and that impact has affected many Americans in a variety of ways. The news about corporate downsizings or bankruptcies greets us each day as we peruse our newspapers, whether in print or digital form. Corporate balance sheets are being battered, and this causes financial managers to appropriately focus on reducing long-term liabilities.

One of the major long-term liabilities for many companies is the liability arising out of workers’ compensation and liability bodily injury claims, which are long-tail in nature and some of the most difficult claims to manage and reserve. Whether this involves corporations or insurers, these claims draw special attention.

The management and reserving of these claims obviously affects the loss ratios and profitability of insurers. The effectiveness of the claim management, with emphasis on the reasonableness of the case reserves, impacts the insurer’s financial strength and its relationship with the various state insurance regulatory bodies.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.