Definition of "Loss trends"

Andy Schramek real estate agent

Written by

Andy Schramekelite badge icon

Keller Williams Five Star Properties

Projections of future accidental losses based on analyses of historical loss patterns. A projected loss picture is used to determine the pure cost of protection and the resultant basic premium, contingency reserves, and whether or not the company should continue selling a given line of business, or remain in a particular geographical area. However, loss trends based on historical data may not really represent likely loss outcomes in the future.

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