The part of the claims‐handling process where the insurer assesses and calculates the funds that need to be set aside to pay each individual claim is known as?

In the claims-handling process, the determination of the funds that need to be set aside for each individual claim is referred to as loss reserving. This step is crucial for insurers as it ensures that they have adequate financial resources available to cover the anticipated costs of claims that have been reported, as well as those that may arise from incidents that have already occurred but have not yet been reported.

Loss reserving involves a thorough analysis of existing claims and the potential expenses related to them, allowing insurers to manage their liabilities effectively. Accurate reserving helps maintain financial stability and compliance with regulatory requirements, as it reflects the insurer's obligation to pay claims.

Other options may relate to aspects of claims management but do not specifically address the process of calculating and setting aside funds for potential claim payouts. For example, loss adjusting typically involves the investigation and evaluation of the claim’s circumstances, while loss assessing focuses on determining the loss and the value of that loss. Risk modelling, on the other hand, is more about predicting potential future losses based on statistical analyses and historical data, rather than dealing directly with the assessment of claims already incurred.