What does Loss Rate mean? Read on to discover the definition & meaning of the term Loss Rate - to help you better understand the language used in insurance policies.
A loss rate is the frequency with which losses are incurred. It is very important for insurance companies to have a robust understanding of the loss rates for their policyholders. These rates will have a dramatic impact on the insurer's continued viability. If they are too high, the insurance company will not be able to operate at a profit.
We hope the you have a better understanding of the meaning of Loss Rate.