Enter the projected claims ($) and the earned premiums ($) into the Calculator. The calculator will evaluate the Expected Loss Ratio. 

Expected Loss Ratio Formula

ELR = PC / EP

Variables:

  • ELR is the Expected Loss Ratio ($/$)
  • PC is the projected claims ($)
  • EP is the earned premiums ($)

To calculate the Expected Loss Ratio, divide the projected claims by the earned premiums.

How to Calculate Expected Loss Ratio?

The following steps outline how to calculate the Expected Loss Ratio.

  1. First, determine the projected claims ($). 
  2. Next, determine the earned premiums ($). 
  3. Next, gather the formula from above = ELR = PC / EP.
  4. Finally, calculate the Expected Loss Ratio.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

projected claims ($) = 500

earned premiums ($) = 700