Question

How is the "Loss Ratio" calculated in insurance?

a.

Losses incurred divided by total premiums written

b.

Losses incurred divided by total claims reported

c.

Losses paid divided by total premiums earned

d.

Losses paid divided by total claims settled

Posted under IC85 Reinsurance Management

Answer: (a).Losses incurred divided by total premiums written Explanation:The "Loss Ratio" is calculated by dividing losses incurred by earned premiums and expressing the result as a percentage. It measures the proportion of losses to premiums written.

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Q. How is the "Loss Ratio" calculated in insurance?
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