loss ratio

noun

Definition of loss ratio

: the ratio between insurance losses incurred and premiums earned during a given period

Examples of loss ratio in a Sentence

Recent Examples on the Web Argo’s loss ratio, which assesses losses on claims to premiums earned, fell 10 percentage points to 75 percent at the end of last year from the end of 2019. Patrick Danner, San Antonio Express-News, "COVID, weather catastrophes take toll on insurer Argo Group's 2020 financial results," 18 Feb. 2021 Argo’s loss ratio, which assesses losses on claims to premiums earned, fell 1.3 percentage points from a year ago to 73.8 percent in the latest quarter. Patrick Danner, ExpressNews.com, "Argo Group aims to become ‘high-performing’ U.S.-focused specialty insurer," 3 Nov. 2020 Insurers that encourage patients to shop for providers that offer lower cost services with higher value and share those savings will receive credit in their medical loss ratio. Bloomberg.com, "Insurers Must Post Out-of-Pocket Medical Costs Under New Rule," 29 Oct. 2020 By comparison, the plans sold under the Affordable Care Act have a minimum loss ratio of 80% to 85%, meaning 80 to 85 cents of every dollar must be spent on medical care for the people paying premiums. Marshall Allen, ProPublica, "“Trumpcare” Does Not Exist. Nevertheless Facebook and Google Cash In on Misleading Ads for “Garbage” Health Insurance.," 21 Oct. 2020 The insurance unit’s medical-loss ratio, or the share of premiums paid out in claims, was 81.9% in the third quarter, compared with 70.2% in the second. Anna Wilde Mathews And Matt Grossman, WSJ, "UnitedHealth Profit Declines, Reflecting Return to More Usual Health-Care Levels," 14 Oct. 2020 Health insurance companies may defend this unseemly situation by pointing to a rule called the medical loss ratio, or MLR. Libby Watson, The New Republic, "The Pandemic Has Been Great for the Health Insurance Industry," 9 Oct. 2020 Argo’s loss ratio, which assesses losses on claims to premiums earned, fell 3 percentage points to 63 percent in the first quarter from a year ago. Patrick Danner, ExpressNews.com, "COVID claims drop at insurer Argo, but still lead to 2Q loss," 6 Aug. 2020 At the same time, CMS must adjust the medical loss ratio to create incentives for health insurance plans to invest in the health of their members. Michael Darrouzet, STAT, "Health care reform: The ‘new normal’ needs to go beyond clinical care," 7 July 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'loss ratio.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of loss ratio

1926, in the meaning defined above

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Time Traveler for loss ratio

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The first known use of loss ratio was in 1926

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Statistics for loss ratio

Last Updated

25 Feb 2021

Cite this Entry

“Loss ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/loss%20ratio. Accessed 2 Mar. 2021.

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More Definitions for loss ratio

loss ratio

noun
loss ra·​tio | \ -ˈrā-ˌshō, -ˈrā-shē-ˌō \

Legal Definition of loss ratio

: the ratio between insurance losses incurred and premiums earned during a given period

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