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.

---

loss ratio British  

noun

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

---

Etymology

Origin of loss ratio

First recorded in 1925–30

Example Sentences

The trick hinges on a seemingly noble safeguard known as the medical loss ratio.

From MarketWatch

CVS posted higher-than-expected revenue and profit in its latest quarter, though its medical loss ratio—which reflects the proportion of premiums paid out to cover patients’ health expenses—came in slightly above consensus estimates.

From Barron's

The loss ratio related to claims didn’t change much.

From The Wall Street Journal

The medical loss ratio tracks the proportion of premiums paid out to cover medical expenses.

From Barron's

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

From Barron's