loss ratio

Definition of "loss ratio"
  1. A numerical value that represents the relationship between the money an insurance company pays out for claims and the money it makes from premiums over a specific time period
How to use "loss ratio" in a sentence
  1. The loss ratio of the insurance company was high, showing they paid out more in claims than they received in premiums.
  2. A low loss ratio can indicate a profitable business as the company is receiving more in premiums than it's paying out on claims.
  3. Insurance companies use the loss ratio to assess their financial health and effectiveness in managing claims and premiums.

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