Enter the total amount of damages ($) and the total insurance premium ($) into the Insurance Loss Ratio Calculator. The calculator will evaluate and display the Insurance Loss Ratio.
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Insurance Loss Ratio Formula
The following formula is used to calculate the Insurance Loss Ratio.
ILR = D / P * 100
- Where ILR is the Insurance Loss Ratio (%)
- D is the total amount of damages ($)
- P is the total insurance premium ($)
How to Calculate Insurance Loss Ratio?
The following example problems outline how to calculate Insurance Loss Ratio.
Example Problem #1:
- First, determine the total amount of damages ($).
- The total amount of damages ($) is given as: 15,000.
- Next, determine the total insurance premium ($).
- The total insurance premium ($) is provided as: 10,000.
- Finally, calculate the Insurance Loss Ratio using the equation above:
ILR = D / P * 100
The values given above are inserted into the equation below and the solution is calculated:
ILR = 15,000 / 10,000 * 100 = 150.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total amount of damages ($) = 30,000
total insurance premium ($) = 40,000
Test your knowledge using the equation and check your answer with the calculator above.
ILR = D / P * 100 = ?
