Definitions for

**"Loss ratio"****Related Terms:**Incurred loss ratio, Combined ratio, Pure premium, Loss reserve, Incurred losses, Loading, Paid losses, Net loss, Loss adjustment expenses, Burning cost, Franchise, Experience, Aggregate deductible, Net premium, Basic premium, Loss adjustment expense, Claims reserve, Gross premium, Coinsurance clause, Deductible clause, Loss constant, Experience refund, Replacement cost insurance, Pro rata, Paid claims, Insurance premium, Underwriting profit, Stop loss reinsurance, Percentage participation, Stated amount, Incurred but not reported, Expense constant, Loss, Supplementary payments, Excess, Ibnr, Cost of insurance, Net cost, Premium discount, Retrospective rating, Benefit amount, Retention, Deposit premium, Valued policy, Net premiums written, Standard premium, Coinsurance, Self insurance, Incurred claims, Aggregate limit

The rate of incurred losses to earned premiums.

In property and liability insurance, the percent that losses bear to premiums for a given period.

In reinsurance, the ratio of losses incurred to net earned reinsurance premiums. The term attritional loss ratio is defined as the ratio of ATTRITIONAL LOSSes to net earned premiums where the term attritional losses is taken to mean losses other than MAJOR LOSSes.

The percent which losses bear to premiums (either earned or written) for a given period.

Incurred losses (including applicable IBNR) divided by the earned premium for an accounting or treaty period. Loss ratios can be calculated on an accident year, calendar year, or underwriting year basis.

The ratio of losses paid or accrued by an insurer to premiums collected over a year.

A formula used by insurers to relate loss expenses to income. Formula: (incurred losses + loss adjustment expenses) divided by earned premiums. See also accident year statistics, burning ratio, expected loss ratio, insured loss ratio.

The proportion of losses incurred to earned premiums. Loss ratio is expressed as a percentage.

The ratio of the total incurred claims made against an insurance policy divided by the total premiums. Loss ratios are used as a method of indicating the amount of benefits returned to policyholders.

The ratio of paid and incurred claims plus expenses to premium.

The ratio calculated by dividing the ultimate net loss by the net book premium, expressed as a percentage. For example, the ratio of $1 ultimate net loss to 50 cents net book premium would be expressed as 200%.

The dollar amount an insurer pays in claims compared to the amount it collects in premiums. Loss ratio is usually shown as a percentage of claims for every dollar collected.

The proportion of paid claims and administrative fees incurred by the insurance carrier (or plan administrator) in relation to the amount of premium dollars or funding received.

Percentage ratio of claims expenditure to earned premiums. Can be calculated on a grossÂ and a net Â basis.

A paid loss ratio is the amount of premium a policyholder has paid to the carrier through the years versus the amount the carrier has paid out on his or her behalf for defense and indemnity. For instance, a paid loss ratio of 50% means the carrier has paid out 50% of what they've received in premium from a particular policyholder. However, the loss ratio doesn’t take into consideration the carrier’s expense costs, which usually run an additional 25-35%. As a result, a loss ratio greater than 75% usually means the carrier is losing money. An incurred loss ratio is the amount the carrier has paid out (defense and indemnity) plus the amount they expect to pay out (reserves) for a particular policyholder versus the amount of premium a policyholder has paid throughout the years. A policyholder that has never filed a claim has a 0% incurred loss ratio.

The percentage which incurred losses bear to premiums.

The ratio of incurred losses including loss adjustment expenses to earned premiums.

Health insurance industry terminology for funds expended by the company to serve any individual policyholder's health needs.

Method used to determine an insurance company’s success in covering current losses out of current premium income; determined by dividing incurred losses by earned premium.

The loss ratio is the incurred losses of a captive compared to the earned premiums expressed as a percentage.

the percentage of claims to earned premiums. BACK TO THE TOP

Losses incurred expressed as a percentage of premiums, most commonly earned premiums, although written premiums are sometimes used.

The ratio of losses to premiums paid.

The losses incurred expressed as a percentage of earned premium.

Total projected claims cost expressed as a percentage of the agencies annual contributions.

The ratio of incurred losses and loss adjustment expenses to net premiums earned, expressed as a percent. This ratio measures the company's underlying profitability, or loss experience, on its total book of business.

An important ratio used to measure an insurance company's results, it is the percentage of claims to premiums.

The ratio calculated by dividing claims into premiums. It may be calculated in other ways, using paid premiums or earned premiums, and using paid claims with or without changes in claim reserves and with or without changes in active reserves.

The proportion of claims paid or payable to premiums earned.

Expression in terms of a ratio of the relationship of losses to earned premium.

The percent of premiums that goes to pay claims. HARRP Members with loss ratios exceeding 49% become subject to paying a Supplemental Underwriting Assessment.

The losses divided by the premiums paid.

The ratio used to measure the amount of claims reimbursed by HCC Life versus the premium collected to reimburse all claims.

The ratio of losses to premiums, usually expressed as a percentage.

The proportionate relationship of incurred losses to earned premiums expressed as a percentage.

Percentage of losses incurred against earned premiums.

Percentage of each premium dollar an insurer spends on claims.

the percentage of losses to premiums.

The ratio of claims to premiums.

The ratio of losses incurred and loss expenses incurred to net premiums earned.

Claims for a policy period (including reserves set) as a percentage of premium earned for the same period.

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