[I032]

incurred losses
1) Events which have happened and which will cause claims to be made to insurers.

2) The total amount shown in an insurer's operating statement as its obligations for policy claims, whether paid or not, during a given period (usually one year). The composition of incurred losses in such a total is derived by the following formula: losses paid during the year, plus loss reserves existing at the end of the year, minus loss reserves existing at the beginning of the year.

(See loss reserve.)