Analyze a multi-year loss run: loss ratio by year, 3- and 5-year loss ratios, frequency and severity.
How the loss run analyzer works
Underwriters read loss runs to see the pattern, not just the total. This analyzer turns a loss run into per-year loss ratios, multi-year averages and severity so you can tell the account’s story.
Formula
Year LR = Incurred ÷ Earned premium. N-year LR = Σ Incurred ÷ Σ Earned premium over the latest N years.
How to use it
Enter each policy year, oldest first.
Enter earned premium, incurred losses and claim count.
Review the multi-year ratios and the worst year.
Worked example
Five years with $788K earned and $395K incurred give a 50.1% five-year loss ratio; 2022 is the worst year at 78%.
Frequently asked questions
Why use a multi-year loss ratio?
One large claim can distort a single year. Three to five years smooth that out.
How current should a loss run be?
Most underwriters want loss runs valued within the last 90 days.
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