: the ratio between insurance losses incurred and premiums earned during a given period
Example Sentences
Recent Examples on the WebTo put it simply: lower medical loss ratio, higher profits for the insurer. Nick Fuller Googins, Men's Health, 17 Aug. 2022 Within weeks he will be judged by his win-loss ratio, fated to face the same comparisons as the 11 other unfortunates who have stood behind center since former Broncos QB Peyton Manning rode off into the sunset in 2016. Joe Lindsey, Outside Online, 3 Aug. 2022 The loss ratio is the percentage of claims versus premium. Louis Bernardi, Forbes, 26 Apr. 2022 Clover Health, which went public in a SPAC transaction, lost more than $4,500 per member in 2021, which translates to a 100% medical loss ratio. Paddy Padmanabhan, Forbes, 15 June 2022 However, that figure is still far above 2019’s direct loss ratio of 47.1%. James Rundle, WSJ, 18 May 2022 Generally speaking, the higher the loss ratio, the higher the renewal, though that is not always the case. Louis Bernardi, Forbes, 26 Apr. 2022 The loss ratio tracks losses incurred to premiums earned. Patrick Danner, San Antonio Express-News, 20 Apr. 2022 That means the good-win versus bad-loss ratio remains tilted heavily in the wrong direction.San Diego Union-Tribune, 5 Jan. 2022 See More
Word History
First Known Use
1926, in the meaning defined above
Legal Definition
loss ratio
noun
loss ra·tio
-ˈrā-ˌshō, -ˈrā-shē-ˌō
: the ratio between insurance losses incurred and premiums earned during a given period