Definitions for loss ratio
loss ra·tio

Princeton's WordNetRate this definition:0.0 / 0 votes

1. loss rationoun

   the ratio of the annual claims paid by an insurance company to the premiums received

WikipediaRate this definition:0.0 / 0 votes

1. Loss ratio

   A loss ratio is a ratio of losses to gains, used normally in a financial context. It is the opposite of the gross profit ratio (commonly known as the gross profit margin).

ChatGPTRate this definition:0.0 / 0 votes

1. loss ratio

   Loss ratio is a financial term used in the insurance industry to refer to the ratio of claims paid by an insurer to the premiums earned. It is typically expressed as a percentage and is used to assess an insurance company's profitability and financial health. A higher loss ratio indicates that the company is paying out more in claims than it's collecting in premiums, suggesting potential financial instability. On the other hand, a lower loss ratio suggests the company is collecting more in premiums than it's paying out in claims, indicating greater profitability.

WikidataRate this definition:0.0 / 0 votes

1. Loss ratio

   A loss ratio is a ratio of losses to gains, used normally in a financial context. For insurance, the loss ratio is the ratio of total losses incurred in claims plus adjustment expenses divided by the total premiums earned. For example, if an insurance company pays $60 in claims for every $100 in collected premiums, then its loss ratio is 60%. Loss ratios for property and casualty insurance, range typically from 40% to 60%. Such companies are collecting premiums more than the amount paid in claims. Conversely, insurers that consistently experience high loss ratios may be in bad financial health. They may not be collecting enough premium to pay claims, expenses, and still make a reasonable profit. Loss ratios for health insurance range generally from 60% to 110%. The terms "permissible", "target", "balance point", or "expected" loss ratio are used interchangeably to refer to the loss ratio necessary to fulfill the insurer's profitability goal. This ratio is 1 minus the expense ratio, where the expenses consist of general and administrative expenses, commissions and advertising expenses, profit and contingencies, and various other expenses. Expenses associated with insurance payouts are sometimes considered as part of the loss ratio. When calculating a rate change, the insurer will typically divide the incurred or actual experienced loss ratio by the permissible loss ratio. The Patient Protection and Affordable Care Act of 2010 now mandates minimum MLRs of 85% for the large group market and 80% for the individual and small group markets.

Matched Categories

1. • Ratio

How to pronounce loss ratio?

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How to say loss ratio in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of loss ratio in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of loss ratio in Pythagorean Numerology is: 2

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=loss ratio
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Loss_Ratio
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=loss ratio