Definition - What does Unreported Claims mean?
Unreported claims refer to insurance claims where the losses have been incurred but have not been filed or reported to the insurance company. This usually happens in the liability, health, and life insurance industries. To answer to these claims when they are filed, insurance companies set up a reserve, known as incurred but not reported (IBNR) funds.
Insuranceopedia explains Unreported Claims
There are situations in insurance wherein losses or damages may have been incurred, as in death, injury, or disability, but no reports or claims have yet to be filed or submitted to the insurance company. Using estimates, insurance companies make funds available in reserve, which they refer to as incurred but not reported (IBNR) funds, to be sourced in the event that claimants would forward to demand payment for such claims in the future.