loss ratio

American  

noun

Insurance.

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

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loss ratio British  

noun

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

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Etymology

Origin of loss ratio

First recorded in 1925–30

Example Sentences

CVS’s Aetna insurance business reported a medical loss ratio, or the percentage of premiums spent on medical services, of 94.8% for the quarter, flat from the same period a year earlier.

From Barron's • Feb. 10, 2026

Oscar’s medical loss ratio, a measure of the proportion of premiums that the insurer pays out on medical bills, rose sharply to 95.4%, well in excess of the average analyst target of 91.1%.

From The Wall Street Journal • Feb. 10, 2026

The solution requires acknowledging that the medical loss ratio rules were designed for an era when insurers and providers operated independently.

From MarketWatch • Dec. 10, 2025

Analysts expect a medical loss ratio, which measures the proportion of premiums paid out to cover medical expenses, of 90.7%.

From Barron's • Oct. 27, 2025

Business conditions were uncertain, overhead charges extraordinarily increased, the loss ratio large and bidding fair to cut their bonus down to nothing.

From Broken to the Plow by Dobie, Charles Caldwell