- The sum of net paid losses and the changes in loss reserves in a given year. Also known as "Pure Losses."
insurance losses incurred, pure losses, claims losses incurred
Related Terms and Acronyms
- Claims Adjuster — Definition,
- An individual who ascertains the insurer's liability after an insurance claim has been made.
- Exposure — Definition,
- How much liability an insurer takes on when they write an insurance policy.
- Incurred But Not Reported (IBNR) — Acronym,
- An estimate of how much an insurance company owes to policyholders for losses that have already occurred but have not yet been reported.
- Insurance Claim — Definition,
- An application for benefits made by an insurance policyholder after an insured event.
- 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 Ratio — Definition,
- A method of comparing an insurer's losses to premiums earned in a specific period of time.
- Loss Reserve — Definition,
- A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
- Loss Settlement Amount — Definition,
- The percentage of damages an insurer is contractually obligated to pay for after a claim.
- Underwriting Income — Definition,
- The income earned by an insurer from underwriting in a certain amount of time.