loss ratio (Meaning)
Wordnet
loss ratio (n)
the ratio of the annual claims paid by an insurance company to the premiums received
Synonyms & Antonyms of loss ratio
No Synonyms and anytonyms found
loss ratio Sentence Examples
- The insurance company experienced a substantial loss ratio of 75%, indicating that three-quarters of its premium revenue was used to pay claims.
- A higher loss ratio signifies that an insurance company is paying out more claims relative to the premiums it collects.
- The insurance industry aims to maintain a balanced loss ratio to ensure profitability while providing adequate coverage to policyholders.
- Factors such as claim frequency and severity influence the loss ratio of an insurance policy.
- An actuary calculates the loss ratio by dividing the total claim costs by the total premiums earned.
- A low loss ratio suggests that an insurance company is efficiently managing its claims expenses and operating costs.
- Insurance regulators monitor loss ratios to ensure the financial stability of insurance companies.
- A loss ratio of over 100% indicates that an insurance company is paying out more in claims than it collects in premiums, leading to potential financial challenges.
- Loss ratio analysis is crucial for insurance companies to optimize pricing, manage risk, and make strategic decisions.
- Insurance companies strive to maintain a loss ratio that allows them to cover claims, operate profitably, and provide long-term value to policyholders.
FAQs About the word loss ratio
the ratio of the annual claims paid by an insurance company to the premiums received
No synonyms found.
No antonyms found.
The insurance company experienced a substantial loss ratio of 75%, indicating that three-quarters of its premium revenue was used to pay claims.
A higher loss ratio signifies that an insurance company is paying out more claims relative to the premiums it collects.
The insurance industry aims to maintain a balanced loss ratio to ensure profitability while providing adequate coverage to policyholders.
Factors such as claim frequency and severity influence the loss ratio of an insurance policy.
