In a different blog, How do Insurance Companies make money?, we discussed that Premiums and Return on Investment contribute a major chunk in the profits. In the same way, claims made by the insurers against any accident would be considered as a loss for the insurance company. These claims combined with the loss preserves from previous years together are known as Incurred Losses. However, this becomes a complex issue since various other things are considered while calculating the total Incurred Losses in a calendar year.
Definition of Loss in the Insurance sector
Loss is simply […]