You are currently not signed in. Any products you have purchased will not be available until you Sign In.
For a personalized walk-through of IRMI Online, Request a Demo.

loss rating

A term applied to a rating technique often used for larger insureds in which that insured's past loss history is used to establish a prospective rate. The past losses are developed and trended, as appropriate, and divided by the amount of a selected exposure base to determine a relationship between the exposure and loss experience. Assuming that the historical data are credible, the resultant factor (loss rate) divided by the insurer's acceptable, or permissible, loss ratio becomes the prospective rate. In some cases, the loss rate is modified to account for possible variations between expected and actual losses before it is converted into the prospective rate.

Links for IRMI Online Subscribers Only: RF III.E

More Risk Finance and Captives Information from IRMI
Books, Manuals, Newsletters IRMI
Risk Financing IRMI Online ReferenceConnect
Captive Insurance Company Reports IRMI Online ReferenceConnect
Captive Practices and Procedures IRMI Online ReferenceConnect
Captives and the Management of Risk IRMI Online ReferenceConnect
The Risk Report IRMI Online ReferenceConnect
Free Risk Financing Articles in
25 Risk-Conquering Ideas
Risk Finance
Captive Insurance
Additional Insured Insurance Law
Insurance Continuing Education Courses from IRMI
Ethics Considerations for P&C Insurance Professionals (CE)
Ethics in the P&C Insurance Workplace (CE)


Social Media

User ID: Subscriber Status:Free