loss ratio

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Definitions from WordNet

Noun loss ratio has 1 sense

loss ratio - the ratio of the annual claims paid by an insurance company to the premiums received
--₁ is a kind of ratio

Definitions from the Web

Loss Ratio

Definition:

The loss ratio, in insurance, is the ratio of incurred losses to earned premiums. It is used to measure the profitability and financial stability of an insurance company.

Sample Sentences:

The insurance company's loss ratio for the year was quite impressive, indicating a strong financial performance.
A high loss ratio can be a sign of inadequate underwriting practices or a higher number of claims.
Insurance regulators closely monitor the loss ratios of insurance companies to ensure policyholders' protection.

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