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Loss ratio

   Also found in: Dictionary/thesaurus, Medical, Acronyms 0.04 sec.
Loss ratio
The ratio of losses paid or accrued by an issurer to premiums collected over a year.


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As insurers know less about a new business risk than a renewed risk, it may take several years for new business loss ratios to reach the more favorable loss ratio levels of the renewal book of business.
``Their loss ratios were much higher, so combined, our loss ratio has gone up.
Softening motor insurance market conditions were evident as the loss ratio of the top 20 insurers increased in 2005.
 
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