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loss ratio
(redirected from Actual Loss Ratio)

   Also found in: Medical, Financial 0.01 sec.
loss ratio
n.
The ratio between the premiums paid to an insurance company and the claims settled by the company.

loss ratio
n
(Business / Insurance) the ratio of the annual losses sustained to the premiums received by an insurance company
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.loss ratio - the ratio of the annual claims paid by an insurance company to the premiums received
ratio - the relative magnitudes of two quantities (usually expressed as a quotient)


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it]], where L/P is the loss ratio, Trend is a linear time trend variable, Age is the number of years that the cohort of contracts has been in effect, X is a vector of contractual characteristics that includes the expected loss ratio and lagged actual loss ratio, [(L/P).
Second, the catastrophic loss was computed as the difference between the actual loss ratio and the estimated loss ratio.
Thus, by chance a looser underwriting level could have better performance than the next underwriting level; this is demonstrated in Exhibit 4 which lists the expected loss ratio, actual loss ratio range, and expresses the expected loss ratio as a percentage of the number of policies.
 
 
 
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