Expected loss (EL)

Term · Insurance and risk management · MLC-T-INS-001393

The average loss that an insurer or self-insured entity anticipates incurring over a given period, calculated by multiplying the probability of a loss event by the potential magnitude of that loss. Expected loss is a key component in pricing insurance premiums and setting reserves. It represents the long-term average of losses, not necessarily the actual losses in any single period.

Table 1. Record
Identifier	MLC-T-INS-001393
Field	Insurance and risk management
Abbreviation	EL

Record as JSON

{
  "id": "MLC-T-INS-001393",
  "term": "Expected loss (EL)",
  "field": "Insurance and risk management",
  "definition": "The average loss that an insurer or self-insured entity anticipates incurring over a given period, calculated by multiplying the probability of a loss event by the potential magnitude of that loss. Expected loss is a key component in pricing insurance premiums and setting reserves. It represents the long-term average of losses, not necessarily the actual losses in any single period.",
  "abbreviation": "EL",
  "url": "https://mlchart.com/terminology/insurance/expected-loss-el/"
}

Record 1,234 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.