All About Loss Run Reports

What is a Loss Run?

Loss runs are reports that provide a summary of all claims made against an insurance policy over a certain period of time. A loss run report typically includes information such as the date of each claim, the type of claim, the amount paid out by the insurer, and the amount of money reserved for the claim.

Loss run reports can be requested by the policyholder, insurance broker, or insurer themselves, and they are often used for risk management and underwriting purposes. 

By analyzing loss runs, insurers can identify trends in claims activity, which can help them determine appropriate pricing and underwriting strategies for specific policyholders or industries. Loss runs can also be used by policyholders to monitor their claims activity and identify areas where risk management strategies may be needed.

How to Get a Loss Run Report

Here are the general steps to follow to get a loss run report:

1. Identify the insurance company: Find out the name of the insurance company that issued the policy. This information should be included on your policy documents or any billing statements you have received.
2. Contact the insurance company: Once you have identified the insurance company, contact them and request a loss run report. You may need to provide your policy number and other identifying information to verify your identity.
3. Provide a time frame: Let the insurance company know the time frame for which you need the loss run report. Loss run reports can cover different periods of time, such as the past year or several years.
4. Follow up: If you do not receive the loss run report within a reasonable amount of time, follow up with the insurance company to ensure that they have received your request and are processing it.

Obtaining a loss run report can help you understand the claims history associated with your insurance policy, which can be useful for budgeting, risk management, and other purposes.

How to Read a Loss Run Report

Once you’ve obtained the document from the insurance company, follow these general steps to help you read the loss run report:

1. Understand the format: Loss run reports can vary in format depending on the insurance company or policy type. Typically, they will include a list of claims, the date of the loss, the type of claim, the amount paid or reserved for the claim, and the status of the claim.
2. Review the claims: Start by reviewing each claim listed on the report. Look for any patterns or trends in the types of claims or the amounts paid out. Identify any outliers or unusual claims.
3. Evaluate the severity: Evaluate the severity of each claim. Determine if the claims are major or minor, and if they are likely to impact the policy or premiums in the future.
4. Analyze the data: Analyze the data and look for trends or patterns. Consider the types of claims, the frequency of claims, and the total amount paid out over time. Use this information to identify areas of risk and to develop strategies to reduce future claims.
5. Consult with an expert: If you are having difficulty interpreting the loss run report, consult with an insurance expert or your insurance agent. They can help you understand the report and identify strategies to reduce future claims.

Remember, a loss run report is a valuable tool for risk management, but it is only effective if you take the time to read and analyze it carefully. By understanding the information presented in the report, you can identify areas of risk and take steps to mitigate them, ultimately helping to reduce your insurance costs and protect your business.

At-Bay appointed brokers can access loss runs in the Broker Platform.

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