Question

What is Burning Cost?What are Incurred But Not Reported (I.B.N.R.) claims?

The cost at which claims would equal the excess of loss reinsurance premiumClaims that have already been reported by the reinsured

The amount paid by the reinsurer for each claim made by the reinsuredClaims that are still outstanding and could be settled at a higher cost

The percentage of the insurer's gross premium incomeClaims that have not yet been reported by the reinsured

The cost of paying all claims during the yearClaims that are not covered by the reinsurance treaty

Posted under IC85 Reinsurance Management

Answer: The cost at which claims would equal the excess of loss reinsurance premiumClaims that are still outstanding and could be settled at a higher cost Explanation:Burning Cost refers to the cost at which claims would equal the excess of loss reinsurance premium.Incurred But Not Reported (I.B.N.R.) claims are those claims that are still outstanding and could be settled at a higher cost.

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Q. What is Burning Cost?What are Incurred But Not Reported (I.B.N.R.) claims?

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