loss ratio
1
7.0
- noun
- Specialized
:
tasa de pérdidas
- Because there are hundreds of thousands of participants, rates and loss ratios are quickly and reliably established.
- medical loss ratio
- loss ratio requirement
- high loss ratio
Examples
-
A low loss ratio indicates that the company is making a good profit from its premiums.
-
Finally, the factor of loss ratio (net claims incurred to net earned premiums) has been found to be negatively associated with insurance profitability (Kaya, 2015; Mehari & Aemiro, 2013).
Academic text (2018) -
Limit health plans' medical loss ratio.
Blog text (11) -
Committee amendment: Limit health plans' medical loss ratio to at least 85%.
Blog text (11) -
Companies with a higher loss ratio have a lower profitability ratio and similarly, a lower sales profitability ratio.
Academic text (2018) -
Data concerning loss ratios in medical malpractice insurance is also illuminating.
Blog text (27) -
Require Medicare Advantage plans to remit partial payments to the Secretary if the plan has a medical loss ratio of less than 85%, beginning in 2014.
Blog text (11) -
Require the Secretary to suspend plan enrollment for 3 years if the medical loss ratio is less than 85% for 2 consecutive years and to terminate the plan contract if the medical loss ratio is less than 85% for 5 consecutive years.
Blog text (11) -
If an insurance company takes in $1 million in premiums and pays out $750,000 in claims, its loss ratio is 75 percent.
-
To evaluate the financial health of an insurer, analysts often look at the loss ratio over the past year.
Surface Forms
Morphology
The compound is directly compositional: 'loss' (losses) combined with 'ratio' (a proportion) yields the idea of a proportion of losses relative to another quantity. While the precise denominator (premiums in insurance) is domain-specific, the overall meaning is derivable from the constituents and follows a common cross-linguistic compounding pattern, so a B1 learner who knows the words would grasp the general concept.
Etymology
The term loss ratio creates a simple image: loss is the money paid for 'claims' and ratio is a comparison of two amounts. It shows how much of the money an insurance company pays out compared with the money it gets from 'premiums', so a high loss ratio means payments are close to or more than income.