What does Broad or Bulk IBNR account for?

Broad or Bulk IBNR (Incurred But Not Reported) specifically accounts for the additional development on known claims. This concept is crucial in insurance as it recognizes that claims may continue to develop over time, even after they have been reported. For instance, a reported claim might have ongoing medical expenses or legal costs that arise after the initial report, resulting in additional costs that weren't fully accounted for at the time of the claim's initial reporting.

While other choices involve aspects of claims, they do not accurately capture the essence of Broad or Bulk IBNR. Claims that have not yet occurred are not covered under IBNR since it deals specifically with claims that are incurred but not fully recognized in the financial statements yet. Claims reported but not yet resolved touch on a different aspect of claims handling that pertains to those that have already been recognized. Total calculated ultimate losses encompass all claims but do not specifically refer to the ongoing development of recognized claims, which is the heart of what Broad or Bulk IBNR is addressing.