InsuranceSelf-insurance Exclusion Underwriting income Property/casualty insurance Peril Life insurance
Actual loss ratio
Insurance companies use a key metric called Loss Ratio to measure their financial performance. It reflects the proportion of claims paid out to the amount of premiums collected in a specific line of insurance during a specific period. A lower loss ratio indicates better profitability for the insurance company, while a higher loss ratio may signal potential financial risks. Understanding this ratio is crucial for evaluating the health of an insurance company and making informed investment decisions.
Related terms
Understand the meaning and definition of Self-insurance in the context of stock market, trading, and investments.
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