What does Assumed Loss Ratio mean? Read on to discover the definition & meaning of the term Assumed Loss Ratio - to help you better understand the language used in insurance policies.
Assumed Loss Ratio
Assumed loss ratio is the expected amount of money that an insurance company may need to use pay for losses as a ratio of the total premiums that come in. These losses include expenditures on claim payouts and other losses the insurance company may have incurred. The loss ratio is calculated by adding the adjustments to the losses and then dividing this number by total of premiums.
We hope the you have a better understanding of the meaning of Assumed Loss Ratio.