This video will explain the definition of incurred but not reported (IBNR). Incurred but not reported is a reserve account used by insurance companies to compensate for claims that have not yet been reported. IBNR is most frequently used by insurance companies. In IBNR situations, an actuary will estimate potential damages, and the insurance company may decide to set up reserves to allocate funds for the expected losses. Watch this video to learn more about how incurred but not reported (IBNR) claims work.