loss ratio
The loss ratio is the proportionate relationship of incurred losses to earned premiums expressed as a percentage.
loss ratio
The loss ratio is the proportionate relationship of incurred losses to earned premiums expressed as a percentage.
Additional Information
If, for example, a firm pays $100,000 of premium for workers compensation insurance in a given year, and its insurer pays and reserves $50,000 in claims, the firm's loss ratio is 50 percent ($50,000 incurred losses/$100,000 earned premiums).
