Insurance Loss Ratio Calculator

Calculate Insurance Loss Ratio



Formula

The formula to calculate the Insurance Loss Ratio is:

\[ \text{ILR} = \frac{\text{D}}{\text{P}} \times 100 \]

Where:

What is Insurance Loss Ratio?

The Insurance Loss Ratio is a measure used in the insurance industry to assess the ratio of total losses (claims) to total earned premiums. It helps in evaluating the financial health and profitability of an insurance company.

Example Calculation

Let's consider an example:

Using the formula to calculate the Insurance Loss Ratio:

\[ \text{ILR} = \frac{50000}{100000} \times 100 = 50\% \]

This means that the insurance loss ratio for this scenario is 50%.