Incurred but Not Reported (IBNR) is an estimate of liability for claims-related events that have occurred but have not yet been reported to the insurer or self-insurer. The amount of IBNR losses plus incurred losses provides an estimate of the total possible liability for losses during a given period.
Incurred Loss Retro is an insurance risk financing plan whereby the insured pays a premium based on actual losses incurred during the policy period. Premium adjustments over the life of the plan are based on incurred losses that take into account outstanding reserves and claims costs in addition to actual reimbursements and medical expenses.
Losses incurred are the total amount of paid claims and loss reserves associated with a specific period of time, usually an insurance year. It usually does not include incurred but not reported (IBNR) losses.
Indemnification: (1) In policies written on an indemnity basis, the insurer reimburses the insured insurer for claims and claims costs already paid by the insured. The technically insured person must not only bear the loss, but also pay the loss before the insurer compensates for the loss. (2) An agreement by one party to assume financial responsibility for the liability of another party. Indemnity agreements are commonly used to impose such a transfer of risk.
An indemnity is a compensation to a party for loss or damage that has already occurred, or a guarantee, by way of a contractual clause, to indemnify the other party for loss or damage that may occur in the future. The concept of indemnification is based on a contractual agreement between two parties, in which one party (the compensator) undertakes to pay for potential loss or damage caused by the other party (the compensator).