The incurred amount, in reference to claims associated with an OCIP/CCIP, represent the amount expected to be paid in order to close a claim. The incurred amount is the sum of the amount paid to date plus the amount set aside for future payments, classified as reserves. The entity responsible for claims management will monitor the progression of the claim and adjust the reserve amount accordingly. As the amount paid and the amount set for reserves fluctuates, so too will the incurred amount. The incurred losses are often used in the financial analysis of the performance of an OCIP/CCIP as that number should be the most accurate estimate of final, expected claim costs.