Loss loading

Term · Insurance and risk management · MLC-T-INS-002074

An additional amount added to the pure premium (the portion covering expected losses) to cover the insurer's administrative costs, overhead, and profit margin. This component accounts for expenses beyond the direct cost of claims, such as underwriting, marketing, and regulatory compliance. It contributes to the final premium paid by the policyholder.

Table 1. Record
Identifier	MLC-T-INS-002074
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002074",
  "term": "Loss loading",
  "field": "Insurance and risk management",
  "definition": "An additional amount added to the pure premium (the portion covering expected losses) to cover the insurer's administrative costs, overhead, and profit margin. This component accounts for expenses beyond the direct cost of claims, such as underwriting, marketing, and regulatory compliance. It contributes to the final premium paid by the policyholder.",
  "url": "https://mlchart.com/terminology/insurance/loss-loading/"
}

Record 1,996 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.