Converted losses

{
  "id": "MLC-T-INS-000973",
  "term": "Converted losses",
  "field": "Insurance and risk management",
  "definition": "Incurred losses multiplied by a loss conversion factor in a retrospective rating calculation. The factor, a figure above 1.0, adds the insurer's loss adjustment expense so the losses used in the formula reflect the cost of handling claims. Converted losses are added to basic premium and the total is multiplied by a tax multiplier to produce the retrospective premium, subject to minimum and maximum limits.",
  "subject": "Workers Compensation",
  "url": "https://mlchart.com/terminology/insurance/converted-losses/"
}