Premium is adjusted on the basis of actual loss experience of the insurance company. Loss Ratio = (Losses + Loss Adjustment expenses) over the premium charged.
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Procedure for changing by uniform percentage the premium rates for several classes of closely related property or liability Insurance contracts in order to bring the combined actual loss ratio of these classes to the expected or permissible loss ratio for these classes. If “A” represents the combined loss ratio, and “E” the combined expected or permissible loss ratio, the loss ratio method calls for multiplying the premium rate of each Policy by the factor (A=E)/E. Compare with “Pure premium method.”

Highest loss ratio which permits an Insurer to earn its anticipated Underwriting profit. This ratio usually is computed as (losses incurred plus loss adjustment expenses)/earned premiums, but it also may be computed as (incurred losses plus loss adjustment expenses)/net premiums written.

Any risk management technique, measure, or method designed to reduce the severity of accidental losses. Loss reduction should be distinguished from loss prevention, which includes risk management measures to reduce the frequency of accidental losses.

Agent’s written account of a claim or loss suffered by his client.

An estimate of the value of a claim or group of claims not yet paid. A case reserve is an estimate of the amount for which a particular claim will ultimately be settled or adjudicated. Insurers will also set reserves for their entire books of business to estimate their future liabilities.
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UK: reserve or provision in accounts in respect of claims which have not been settled.
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US: The amount set up as the estimated cost of a claim. (See IBNR Reserve)
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The estimated liability, as it would appear in an insurer’s financial statement, for unpaid insurance claims or losses that have occurred as of a given evaluation date. Usually includes losses incurred but not reported (IBNR) losses due but not yet paid, and amount not yet due. For individual claims, the loss reserve is the estimate of which will ultimately be paid out on that claim.
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The insurer’s estimated total liability for claims that have not yet been paid or losses that have occurred during a certain time frame. This amount usually also includes losses incurred but not yet reported, losses that are due but that have not been paid yet, and amounts that are not yet due.

Periodic report that lists accidental losses or claims incurred by an organization. Usually prepared in computerized form, a loss run shows each claim or loss number, date of loss, status (open or closed), claimant: description of loss, value of incurred loss. Loss reserve, and other information designed to analyze or to prevent such losses in the future.