Claim Ratio

The ratio of paid or incurred claims to earned premiums over a defined period. Alternatively it may be the ratio of paid or incurred claims on business written in an underwriting period to the written premiums for that period. It may be either net or gross of reinsurance. Also, often called the loss ratio.

Claim reserve

In insurance, an estimate of the amount of money to set aside that will be needed to pay insurance claims. The claim department gathers information during the course of handling the claim to obtain this estimate. These data may include the extent to which the claim is covered by the policy, the effect of previously paid claims on the amount of coverage available to pay a current claim, and the effect of any applicable reinsurance coverage on the claim.