What is an IBNR model?

IBNR stands for "Incurred But Not Reported" model.

An IBNR model is a statistical method used in the insurance industry to estimate the amount of outstanding claims or losses that have been incurred but have not yet been reported to the insurer. This model is crucial for insurers to determine their financial reserves and maintain their solvency.

By accurately estimating IBNR claims, insurers can ensure they maintain adequate reserves to cover future claim payments, which helps protect policyholders and maintain the financial stability of the insurance company.

AHP Consultants are experienced in developing IBNR estimates for their clients (i.e., health plans, self-funded employers, unions, insurance brokers, and government agencies). Learn more about IBNR consulting here.