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Loss Trends

Definition of "Loss trends"

Diane Oakes
  Coldwell Banker Residential Real Estate

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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