CLAIMS

RATIO

ALL IN ONE

A buildings policy claims ratio (or loss ratio) is the ​ratio of claims to premiums; in other words, the ​percentage of claims to premium over a given ​period.

If the loss ratio for the year is 55% it means that for ​every R100 of premium collected by the insurer ​during the same period, R55 was paid out in claims.

For the insurer to make a profit or stay in business, a ​reasonable overall claims ratio must be achieved.

Authorised financial services provider FSP 15269