It is noteworthy that a recent Central Bank’s enforcement investigation6 found that certain 2/5  BIS central bankers' speeches  individuals were: manipulating claim reserve estimates by recording claim reserve estimates that were significantly lower than that recommended by the claim handlers; and/or significantly delaying the recording of the claim reserve estimate increases recommended by the claims handlers in relation to certain large loss claims.
In order to manage the large loss claims subject to the under-reserving process, a list, was maintained. The list detailed, amongst other things, the existing claim reserve estimate recorded on the firm’s claims database, as well as the claims handlers’ recommended claim reserve estimate. Frequent, undocumented meetings were held between those individuals involved in the under-reserving process to discuss the large loss claims.