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Insurance

Pure premium

In the realm of insurance, there exists a concept known as the "basic loss ratio." This refers to the portion of an insurance premium that is purely representative of the costs incurred by the insurer due to losses, without factoring in any additional expenses or profits. Understanding this fundamental aspect of insurance can provide valuable insights into the inner workings of the industry. Let us delve deeper into this concept to gain a thorough understanding of its implications.
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