Expected Loss Ratio Calculator

Formula

The formula to calculate the Expected Loss Ratio (ELR) is:

\[ ELR = \frac{PC}{EP} \times 100 \]

Where:

Expected Loss Ratio: A measure used in insurance to compare the projected claims to the earned premiums. It helps in assessing the profitability and risk associated with insurance policies.

Let's say the projected claims (PC) are \$50,000 and the earned premiums (EP) are \$100,000. Using the formula:

\[ ELR = \frac{50,000}{100,000} \times 100 = 50\% \]

So, the expected loss ratio (ELR) is 50%.