Loss Ratio Calculator

Rs
Rs
Finance

The Loss Ratio Calculator measures insurance claims paid as a percentage of premiums earned. Enter claims and premiums to get the loss ratio, a key insurer profitability metric.

Formula

Loss Ratio = Claims Paid ÷ Premiums Earned × 100
  • A loss ratio below 100% means premiums exceed claims.
  • Insurers also add an expense ratio to get the combined ratio.

Rs 600,000 claims, Rs 1,000,000 premiums

Inputs
  • Claims Paid: 600000 Rs
  • Premiums Earned: 1000000 Rs

600,000 ÷ 1,000,000 × 100 = 60% loss ratio.

Frequently asked questions

What is a good loss ratio for insurers?
Typically 40–60%, but it depends on the line of insurance and how much is loaded for expenses and profit.