How Principal-Based Reserving Affects Your Business.

Principle-Based Reserves represent a change in the way carriers calculate reserves needed to pay future claims. Existing reserving formulas are more than 150 years old. Because products have evolved since then, the old one-size-fits-all approach to reserving is moving to a “right-size” method aligned to the actual risk carriers assume on various products. Learn how right-sizing the reserves may benefit your client.