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(You must mean premiums collected divided by payouts and claim expenses. Otherwise, if the inverse ratio were 1.20, that would imply that insurance companies w
by waterhouse 10y ago
(You must mean premiums collected divided by payouts and claim expenses. Otherwise, if the inverse ratio were 1.20, that would imply that insurance companies were losing money.)
- patio11 10y agoInverse of loss ratio answers the question "Would I pay $5 to purchase $1 of claims with an expected value of $1?" No; you'd pay far closer to $1.20.