Which line of insurance has the largest break even combined ratio?
Which line of insurance has the largest break even combined ratio?
medical malpractice lineThe largest break-even combined ratio is for the medical malpractice line, which is at 115; for general and product liability lines, it is 113; and for worker’s compensation, it is 112.
Why is insurance loss ratio important?
Loss ratios help assess the health and profitability of an insurance company. A business collects premiums higher than amounts paid in claims, and so high loss ratios may indicate that a business is in financial distress.
How does insurance explain loss ratio?
The loss ratio is a mathematical calculation that takes the total claims that have been reported to the carrier, plus the carrier’s costs to administer the claim handling, divided by the total premiums earned (This refers to a portion of policy premium that has been used up during the term of the policy).
