Burning cost

{
  "id": "MLC-T-INS-000641",
  "term": "Burning cost",
  "field": "Insurance and risk management",
  "definition": "The actual cost of losses incurred by an insured or a reinsured entity over a specific period, often expressed as a percentage of premium or exposure. It represents the pure loss experience without factoring in expenses, commissions, or profit margins. This metric is frequently used in experience-rated insurance programs and reinsurance treaties to determine future premiums or adjust rates.",
  "url": "https://mlchart.com/terminology/insurance/burning-cost/"
}