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

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

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Average loss ratios on auto insurance lines tend to run at about 60%-70% of premiums and about the same on homeowner coverage.

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The company's medical loss ratio for the quarter, the percentage of spend on claims compared to premiums collected, was 82.3%, compared with 81.6% last year.

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Europe's fifth-largest insurer said it saw its overall catastrophe loss ratio for the first nine months around two percentage points above long-term trends.

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