CLAIMS

RATIO

ALL IN ONE

In the sectional title environment, a claims ratio of ​between 35% and 55% is desirable in order to ​maintain stable premium rates.

Costs make up 30-40% of the premium, thus, 60% ​is considered to be the break even point for ​insurers.

The insurer usually runs at a loss when the ratio is ​higher than 60%. When a policy reaches 55%, it is ​in danger zone.

Ideal range is 35% to 55% as indicated by the ​green block alongside.