loss ratio

noun

, Insurance.

1. the ratio of the losses paid or accrued by an insurer to premiums earned, usually for a period of one year.

loss ratio

noun

1. the ratio of the annual losses sustained to the premiums received by an insurance company

Word History and Origins

Origin of loss ratio¹

First recorded in 1925–30

Example Sentences

The more risk that is managed, the lower Shepherd’s loss ratios may prove over time, allowing it to better compete on price.

From TechCrunch