Accident-Year Statistics
Barron's Insurance Dictionary:
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Accident-Year Statistics
Record of losses and premiums received for accident coverage within a 12-month period. These statistics show the percentage of each premium received that is being paid out in claims and enables the establishment of a basic premium reflecting the pure cost of protection. The trend line generated by the record of losses is an important statistical tool for predicting future losses.
| Accident and Sickness Insurance, Accident and Health Insurance, Accident Severity | |
| Accidental Death Clause, Accidental Death Insurance, Accidental Death and Dismemberment Insurance |
Investopedia Financial Dictionary:
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Accident-Year Statistics
A statistic used by insurance companies to gauge what percentage of the premiums received are being paid out in claims. Accident-year statistics are a measure of the total losses against the total revenue (both deductibles and premiums).
Investopedia Says:
It is a useful tool with regards to setting the premiums for the following year. In watching the trends of the accident-year statistics, insurance companies are able to forecast what their losses are likely to be, and therefore, decide what premiums to charge in order to make a profit.
Related Links:
Find out how insurers use credit history to build an insurance score and how it could affect your bottom line. How An Insurance Company Determines Your Premiums
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Barron's Insurance Dictionary
Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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