Tuesday, March 10, 2009

Insurance Definition Accident Year

Insurance Definition Accident Year
Insurance Definition Accident Year

Insurance Definition Accident Year is the 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.