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. 

Insurance Loss Ratio Formula

The following formula is used to calculate the Insurance Loss Ratio. 

ILR = D / P

ILR = D / P * 100

  • Where ILR is the Insurance Loss Ratio
  • D is the total amount of damages ($) 
  • P is the total insurance premium ($) 

To calculate the insurance loss ratio, divide the total damages by the total premium.

How to Calculate Insurance Loss Ratio?

The following example problems outline how to calculate Insurance Loss Ratio.

Example Problem #1:

  1. First, determine the total amount of damages ($).
    • The total amount of damages ($) is given as: 15,000.
  2. Next, determine the total insurance premium ($).
    • The total insurance premium ($) is provided as: 10,000.
  3. 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 = ?