MLchartDataset catalogue

Stair stepping

Term · Insurance and risk management · MLC-T-INS-003742

A claims reserving practice in which the reserve on a known claim is raised in small steps over successive reviews instead of being set at its likely ultimate cost at the outset. Reported losses then develop upward over time, and current liabilities can be understated until the reserve catches up. Auditors and regulators treat stair stepping of case reserves as a sign of weak reserving.

Table 1. Record
IdentifierMLC-T-INS-003742
FieldInsurance and risk management
Record as JSON 
{
  "id": "MLC-T-INS-003742",
  "term": "Stair stepping",
  "field": "Insurance and risk management",
  "definition": "A claims reserving practice in which the reserve on a known claim is raised in small steps over successive reviews instead of being set at its likely ultimate cost at the outset. Reported losses then develop upward over time, and current liabilities can be understated until the reserve catches up. Auditors and regulators treat stair stepping of case reserves as a sign of weak reserving.",
  "url": "https://mlchart.com/terminology/insurance/stair-stepping/"
}

Record 3,200 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.