loss pick
A loss pick is an underwriter's (or actuary's) estimation of future losses based on past losses.
loss pick
A loss pick is an underwriter's (or actuary's) estimation of future losses based on past losses.
Additional Information
Typically, 5 years of historical loss data will be used to estimate a future year's losses. Loss picks are used to quantify an estimate of the loss component of a typical loss sensitive rating plan such as a retrospective program. The premium is composed of expenses and the loss pick.
Synonyms
expected losses
