Configure Implicit Reserve on Risk

An implicit reserve for a peril refers to the amount of money an insurance company indirectly sets aside to cover potential future claims related to a specific risk or peril (such as fire, flood, or theft) without explicitly labeling it as a separate reserve.

It's essentially the portion of the insurer's general reserves that accounts for future claims related to specific types of risks or events. The implicit reserve reflects the company's expectation of claims arising from these perils, even if it isn't separately earmarked as a distinct reserve for that particular risk.

The implicit reserve and implicit reserve currency is set up in Product Factory, in the Insurance Peril form. For each peril, you can set up the implicit reserve and implicit reserve currency.