Loss ratio

Term · Insurance and risk management · MLC-T-INS-002085

The ratio of incurred losses and loss adjustment expenses to earned premiums over a period, expressed as a percentage. It shows the share of premium revenue paid out or reserved for claims. Break-even sits well below 100 percent because expenses must also be covered, so underwriting profitability is judged by the combined ratio, which adds the expense ratio to the loss ratio.

Table 1. Record
Identifier	MLC-T-INS-002085
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002085",
  "term": "Loss ratio",
  "field": "Insurance and risk management",
  "definition": "The ratio of incurred losses and loss adjustment expenses to earned premiums over a period, expressed as a percentage. It shows the share of premium revenue paid out or reserved for claims. Break-even sits well below 100 percent because expenses must also be covered, so underwriting profitability is judged by the combined ratio, which adds the expense ratio to the loss ratio.",
  "url": "https://mlchart.com/terminology/insurance/loss-ratio/"
}

Record 2,007 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.