Glossary
Loss Run
A carrier-issued report of an insured's claims history over a stated period, used in underwriting and renewal marketing.
Loss runs list claims with dates, descriptions, amounts paid, and reserves outstanding. Underwriters rely on them to price risk, and agencies request them whenever they market an account.
They also drive contingent commission. Because profit-sharing agreements turn on loss ratio, the claims in an agency's loss runs determine whether a bonus is earned — making them worth reviewing well before the measurement period closes.
See also
- Claims Reserve — The amount an insurer sets aside as its estimate of what an open claim will ultimately cost.
- First Notice of Loss — The initial report of a claim to the carrier, starting the claims process.
- Profit Sharing — A carrier bonus paid to an agency when the business it placed performs better than an agreed loss-ratio threshold.