Claim departments play a significant and often under estimated role in the financial management of an insurance company. The obvious conclusion to both insiders and outsiders is that vast sums of money are required to settle claims. There is a much bigger picture that is neither well understood nor effectively practiced. That is the impact that reserves, emanating from the claims department, have on the entire company. To many adjusters the reserves placed on unpaid files are a matter of routine. The focus is limited to file handling. Similarly, not all members of claims management are aware of how these reserves fit into the bigger corporate picture.