Hi, In solutions 21.6 (chapter 21 is on reserves and solvency capital requirements), it's stated there that IBNER may be defined separately from Outstanding Claims Reserves because of: different trends in IBNER reserves different tax treatment from other reserves Can someone please elaborate on the types of trends that can be in IBNER reserves and what sort of different tax treatments for reserves are there? Thanks
Hi, There may be trends in under/over-reserving, for example, over time, reserve estimates may get more accurate, in which case there would be a downward trend in the IBNER reserve. We don't need to go into detail on tax for ST1 - it's good enough to just be able to say that there may be different tax treatments of the reserves. I hope this helps, Anna
