Insurance Terms
Welcome to our terminology page! Here, you'll find a comprehensive list of key terms and definitions relevant to the health insurance space.
All insurance terminologies
Loss Ratio
The loss ratio method is a way to calculate how much money an insurance company makes relative to the benefits that it has to pay out. It is used to determine an insurance company’s financial health.
The loss ratio equation is as follows:
Loss ratio = (Benefits paid out + Adjustment expenses) / Premiums collected