Pure loss cost

{
  "id": "MLC-T-INS-002768",
  "term": "Pure loss cost",
  "field": "Insurance and risk management",
  "definition": "The portion of an insurance premium that is directly attributable to covering expected claims and claim adjustment expenses, without including any allowances for insurer overhead, profit, or commissions. It represents the raw cost of risk for a particular line of business or class of insureds. Actuaries calculate pure loss costs based on historical claims data and projections of future losses.",
  "url": "https://mlchart.com/terminology/insurance/pure-loss-cost/"
}