The anticipated amount of claims during a contract year, as determined by statistics.
Insurance Encyclopedia
Expected incurred claims
Total dollar amount of insurance claims within a specific period of time that are predicted to be paid.
Expected Loss
The average loss in the long run. The expected loss is the mean of the probability distribution of losses, not the mode.
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Arithmetic mean, or expected value, or the probability distribution of the amount of loss which may occur during one year (or other period). See Also: “Expected value” and “Normal loss.”
Expected Loss Ratio
Underwriting loss ratio-computed as incurred losses plus loss adjustment costs, all divided by earned premiums-which an Insurer expects to achieve for a given line of Insurance for a specified period. If the expected loss ratio is achieved, and if the Insurer’s operating expenses do not exceed normal levels, the Insurer earns is expected Underwriting profit.
Expected morbidity (Health Insurance)
The anticipated frequency of illness or injury in a particular time frame to a certain group of people, as determined by a mortality table.
Expected mortality
Deaths that are anticipated to occur to a certain group in a specific time based on the statistical figures in the mortality table. It is usually shown as a ratio of expected death insurance claim payments to premiums.
Expected mortality (Life Insurance)
The anticipated probability of death during a particular time frame to a certain group of people, as determined by a mortality table.
Expected Tangible Loss Method
A method that Directs the risk manager to select the tool that would produce the lowest average tangible rupee outlay in the long run.
Expected Value
Arithmetic mean of all possible outcomes of a specified future event, such as annual amounts of incurred or insured losses, if all possible outcomes are equally probable, their expected value is their sum divided by the number of possible outcomes. If all possible outcomes are not equally probable, each outcome must first be weighted (multiplied) by its probability, then the sum of these weighted outcomes is divided by the sum of the weights.
Expedited appeal
1. Medicare+Choice organization’s second look at whether it will provide a health service. A beneficiary may receive a fast decision within 72 hours when life, health, or ability to regain function may be jeopardized. 2. Appeal for medical service, thought by the physician, to be urgent.