Do you want a high or low loss ratio?

Do you want a high or low loss ratio?

The lower the ratio, the more profitable the insurance company, and vice versa. If the loss ratio is above 1, or 100%, the insurance company is unprofitable and maybe in poor financial health because it is paying out more in claims than it is receiving in premiums.

What is a good loss ratio for property insurance?

40%-60%In general, an acceptable loss ratio would be in the range of 40%-60%.

What is a good gross loss ratio?

Loss ratios for property and casualty insurance (e.g. motor car insurance) typically range from 40% to 60%. Such companies are collecting premiums more than the amount paid in claims. Conversely, insurers that consistently experience high loss ratios may be in bad financial health.

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