insurance::recoveries

Recoveries

Amounts recovered by an insurer after settling a claim, through subrogation, salvage, or reinsurance.

Canonical Definition

Recoveries are amounts received by an insurer following the settlement of a claim, which reduce the net cost of that claim. They arise from three principal sources: subrogation (recovery from a liable third party), salvage (proceeds from disposal of damaged property), and reinsurance (amounts recoverable under reinsurance treaties or facultative arrangements). Recoveries are recorded as assets (reinsurance recoverables) or as income and are netted against gross claims costs in financial reporting. Source: IAIS Glossary; CAS Glossary; IFRS 17 paragraphs on reinsurance contracts held.