What Does Loss Pick Mean?

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What does Loss Pick mean? Read on to discover the definition & meaning of the term Loss Pick - to help you better understand the language used in insurance policies.

Loss Pick

Loss Pick

Otherwise known as "expected losses," an underwriter's (or actuary's) estimation of future losses based on past losses. Typically, 5 years of historical loss data will be used to predict an estimate of a future year's losses. Loss picks are used to quantify an estimate of the loss component of a typical loss sensitive rating plan such as a retrospective program. The premium is composed of expenses and the loss pick.

We hope the you have a better understanding of the meaning of Loss Pick.

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