loss ratio

(redirected from Actual Loss Ratios)
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Related to Actual Loss Ratios: Paid Loss Ratio
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the ratio of the annual claims paid by an insurance company to the premiums received

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References in periodicals archive ?
Based on the pricing formula that includes the larger A$160 fixed charge, the estimated loss ratio matches the actual loss ratio quite well.
Second, the catastrophic loss was computed as the difference between the actual loss ratio and the estimated loss ratio.
In particular, it is important to focus on the actual loss ratios, since the anticipated loss ratios match closely to the actual for virtually all companies.
At the end of each period, the Insurance Services Office (an independent actuarial organization) calculates the actual loss ratios, and property and casualty underwriters then incur gains or losses as they sell catastrophe futures contracts previously purchased.
Underwriters and others that make up the market for these contracts will form expectations regarding the actual loss ratios on future quarters.