- A ratio comparing the losses and loss adjustment expenses incurred to premiums earned in a set period of time.
claims loss ratio
Related Terms and Acronyms
- Claims Adjuster — Definition,
- An individual who ascertains the insurer's liability after an insurance claim has been made.
- Expense Ratio — Definition,
- A method of calculating an insurer's operating efficiency.
- Exposure — Definition,
- How much liability an insurer takes on when they write an insurance policy.
- Insurance Claim — Definition,
- An application for benefits made by an insurance policyholder after an insured event.
- Lapse Ratio — Definition,
- A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
- Loss — Definition,
- When expenses are larger than revenues.
- Loss Adjustment Expenses (LAE) — Acronym,
- Expenses incurred by loss adjusters when they investigate and settle claims.
- Loss Control — Definition,
- The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
- Loss Settlement Amount — Definition,
- The percentage of damages an insurer is contractually obligated to pay for after a claim.
- Losses Incurred — Definition,
- The total net losses of an entity in a year.
- Medical Loss Ratio — Definition,
- A method of comparing the medical costs paid to the premiums earned by an insurance company in a specific period of time.
- Policy Illustration — Definition,
- An outline of how a policy will perform under various conditions over a period of time.
- Policyholder Dividend Ratio — Definition,
- A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
- Policyholder Surplus — Definition,
- A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
- Premium-to-Surplus Ratio — Definition,
- A method used to determine an insurance company's financial stability.