The loss ratio—incurred claims divided by earned premiums—is a core performance indicator used to assess underwriting profitability, pricing adequacy, and portfolio quality. Analysed over time and segmented by line, product, and distribution channel, it reveals trends such as deteriorating frequency, rising severity, or inadequate rate. Insurers combine loss ratio insights with expense and acquisition cost data to manage the combined ratio, refine underwriting appetite, and support data‑driven conversations with brokers and capacity providers.
