Which term refers to the financial accountability for losses an insurer is obligated to pay?

The term that refers to the financial accountability for losses an insurer is obligated to pay is claims payable. This concept encompasses the amounts that an insurance company expects to pay out as claims for loss events that have already occurred, even if the payment hasn't been made yet. Claims payable is a liability on the insurer's balance sheet, representing an obligation to policyholders for claims that have been reported and are pending payment.

In the context of insurance finance, reserves represent the funds set aside to cover future claims, while underwriting loss refers to a situation where the costs of underwriting exceed the premiums collected. Policyholder surplus, on the other hand, is the difference between an insurer's total assets and its total liabilities. While these terms are important in assessing an insurer's financial health, claims payable specifically denotes the insurer's present obligation to settle claims, making it the most relevant term in this context.