Note: The Loss Ratio Report is part of the Claims Dashboard or Fleet Dashboard and is therefore only available to our customers of the "Powerful Analytics" and "True Platform" packages. You'll find the Loss Ratio report at the bottom left of the menu under Claims Dashboard.
What is the loss ratio report?
The Loss Ratio Report is a comparison of the total annual premiums you pay for the insurance and the amount that the insurance pays for your damage throughout the year.
Why is this important?
Each insurance company has provisions in the contract that allow them to increase their premiums if the damage costs you claim from them exceed the amount you pay in the premiums. As a rule, the acceptable threshold for covered claims costs is no more than 70% of your annual premiums. That is why we mark this in the report as a warning level.
How can I use the report?
Throughout the year, especially when dealing with expensive damage, you should refer to the Loss Ratio Report to see if you can afford to open an insurance claim. If repairing the damage threatens to bring you beyond the alert level shown in the report, review your master agreement. If the risk associated with increased premiums is higher than the cost of the actual damage, then you can bear the cost yourself.
What is included in the report?
The loss ratio report is calculated for a full calendar year from 1 January. It contains:
- "Insurance premiums": the sum of all annual fees you pay (separately for each insurance framework contract you set up).
- "Amounts paid by insurance": the sum of all amounts paid by each insurance company on your behalf, based on the total amount of insurance cover.
- "Insurance reserve": the sum of the estimated amounts paid by each insurance company on your behalf for outstanding claims.
In addition to these three metrics, the report also shows you the sum of the damage costs you bear, including the damage the insurance was not involved in at all. This is helpful if you want to measure what would have happened if you had claimed these amounts from the insurance company (how close would it have come to the warning limit?).
Why do my premiums appear as an "unknown insurance company"?
If your vehicles have an insurance contract, we can calculate the annual premium. However, if the insurance contracts are not linked to a framework contract, we can not know with which company the contracts were concluded.
The accuracy of both insurance premiums and claims costs is essential to this report. Since the warning level is based on the relationship between the two sums over a whole year, incomplete data always results in incorrect calculations.
Why is the "amount paid by the insurance" labelled "unknown insurance"?
Some damages can have an insured event in a company for which there is no framework contract. Without the framework contract we can not say with certainty where we should sum up the amount paid by the insurer and therefore we will include the amount in this category.
If this happens, we will also show you a warning in which you will find a link to a list of all the damages involved. You can open the link, edit the claim and select the right insurance company from the list.