The MIABC has two categories for new matters: claims and incidents. If a new claim is reported, but it seems clear that there will be no liability or it seems very unlikely that the person will pursue the claim, the MIABC will usually open such matters as an incident rather than a claim. The importance of this is that an incident does not affect a member’s claims experience rating.
If a matter is categorized as a claim, either because it is more complicated, or because the MIABC fears it is likely to escalate, the effect that the claim has on the claims experience rating is proportionate to the amount of money reserved for the claim. Therefore, the effect will be minor unless the claim becomes concerning enough to warrant a significant reserve.