In 2012, the amount of prior year reserves released as a proportion of gross reserves was greater than 3 %. (alephblog.com)
But federal rules require the agency to maintain a 30 - year reserve fund for all the insurance it has in force plus maintain an additional 2 percent reserve on top of that. (nvbr.com)
Prior - year reserve development is caused by unexpected loss development on historical reserves. (insurancenewsnet.com)