Which type of claim is most likely to utilize reopened claims reserves?

Reopened claims reserves are typically associated with personal injury claims. This is primarily due to the nature of these claims, which often involve ongoing medical treatment, rehabilitation, or potential future complications. Personal injury claims can require the insurer to set aside additional funds beyond the initial estimation of the claim to accommodate changes in the claimant's condition, further medical expenses, or prolonged legal proceedings.

As the situation regarding the injured party develops, there might be a need to reassess the total claim amount, thus requiring the reserves to be reopened and adjusted. This flexibility is crucial for insurers to manage their financial exposure effectively and ensure that they can meet their obligations if a claim amount increases after the initial settlement.

In contrast, other types of claims, such as property damage, may not require as much ongoing estimation once the damage is assessed and a settlement is reached. Commercial and liability claims can also involve complexities, but the ongoing medical and personal factors in personal injury claims make them the most likely candidates for needing reopened claims reserves.