Bulk reserves are established at the portfolio level using actuarial methods, covering expected development on known claims beyond individual case reserves and claims not yet individually evaluated.
They are distinct from incurred but not reported reserves, which address claims not yet known.
Alternative Names:
Aggregate Reserve, Formula Reserve
Why it Matters?
Bulk reserving matters to defense practice indirectly, because it reflects the carrier's expectation that individual case reserves collectively understate ultimate cost. That expectation shapes how carriers view categories of claims and can drive portfolio-level decisions such as tightening reserving guidance or changing panel assignments in a jurisdiction where development consistently exceeds initial estimates.
Frequently Confused with
Related terms
Frequently asked questions
How does a bulk reserve differ from a case reserve?
What does bulk reserving signal?
