Sentences with claims ratio
- There are two main reasons why this business is profitable: the premiums are not cheap, and the claims ratio is low.The claims ratio is equal to the claims rate divided by the risk premium rate.The claims ratio is the percentage of claims costs incurred in relation to the premiums earned.
- Compare this with the combined ratio, which is the combination of the insurer's loss ratio and expense ratio, and the loss ratio, which is the amount of money that an insurance company pays out in one year, divided by the amount of money that it receives in premiums.