Burning Cost Ratio

(redirected from Pure Loss Costs)

Burning Cost Ratio

In insurance, the ratio of losses for which a reinsurer pays to the insurer's premium income. It is also called pure less cost.
References in periodicals archive ?
This deeper understanding covers not only pure loss costs and sales expenses but also supports underwriting, customer service and shared service costs such as information technology, human resources and finance that make up true product pricing.
For instance, when some risk managers speak of costs, they mean pure loss costs, while others may refer to total premiums.
Computed statistics such as average claim costs, pure loss costs and claim frequencies are often the basis for these analyses.