The Loss Ratio Calculator helps analyze an insurance company's or policy's financial health. Instantly determine underwriting profitability by comparing total claims incurred against earned premiums. Essential for risk assessment and understanding insurance performance.
Formula:
Loss Ratio (%) = (Incurred Losses / Earned Premiums) × 100
Where:
- Incurred Losses: The total amount of claims paid and reserves set aside for claims that have occurred but not yet been paid during a specific period.
- Earned Premiums: The portion of premiums for which the insurance company has provided coverage during the same specific period.