What term describes the provisions for future liabilities in insurance?

The term that describes the provisions for future liabilities in insurance is "Reserve." In the context of insurance, reserves are funds that insurers set aside to pay for future claims and obligations. Insurance companies must estimate the amount of money needed to cover claims that have already occurred but have not yet been fully paid out. This ensures financial stability and the ability to meet policyholder obligations. Reserves are crucial for regulatory compliance, as they help ensure that an insurer can meet its future liabilities without risking insolvency.

Other options represent different concepts in the insurance field. An endowment refers to a type of life insurance policy that provides a benefit after a specified period or upon the insured's death. A claim fund typically pertains to specific funds allocated for handling claims but does not encompass the broader aspect of future liabilities. Underwriting involves the process of evaluating risk and determining the appropriate premium for an insurance policy, rather than addressing future claims liabilities. Thus, "Reserve" accurately describes the funds set aside to address anticipated future obligations.