What is the trigger entity for reserve rules?

The trigger entity for reserve rules is the exposure. In the context of insurance, reserves are amounts set aside to cover future claims liabilities, and they are closely associated with the exposures that generate those claims. An exposure refers to the potential for loss or damage that a policyholder has under their insurance contract, which can lead to claims.

When a claim arises, it is linked to a specific exposure, and the reserve rules dictate how much money should be allocated to cover that potential claim based on the characteristics of the exposure. This relationship means that the exposure serves as the foundation for determining reserve amounts, making it the key trigger entity in this scenario. The other entities—claims, policies, and transactions—play important roles in the overall claims process but are not the direct basis for setting reserve amounts in relation to potential losses associated with exposures.