Loss Run Report Example

Why loss run formats vary by carrier

There is no universal standard for loss run reports. Every carrier generates them from their own claims management system, which means the column headers, page layouts, data organization, and even the terminology differ from one carrier to the next.

A Travelers loss run might list "Date of Occurrence" where a Hartford loss run says "Loss Date." One carrier separates indemnity and expense payments into distinct columns; another combines them. Some include descriptions of each loss; others provide only a code.

This inconsistency is the #1 reason loss run processing is so time-consuming for agencies — you can't just copy and paste, because every report is structured differently.

Annotated example: reading a loss run

Below is a walkthrough of a generic loss run report. While no two carrier formats are identical, the underlying data is consistent:

Header section (policy-level)

• Named insured — The legal entity covered by the policy. Watch for d/b/a names, subsidiary names, or "as respects" endorsements.
• Policy number — The unique identifier for this policy. Cross-reference with your AMS to confirm you have the right account.
• Policy period — Effective and expiration dates. Confirm these match the years you requested.
• Carrier — The issuing carrier. For program business, the carrier may differ from the MGA you placed it with.
• Valuation date — The date through which claim data is current. This matters because open claim reserves may have changed since the valuation date.

Claims section (claim-level rows)

• Claim number — The carrier's internal reference for the claim.
• Date of loss — When the incident occurred. Not the same as date reported or date the claim was opened.
• Claimant — The injured party (for liability claims) or the affected property/vehicle.
• Paid — Total amount the carrier has paid out to date. May be split into indemnity (the actual loss amount) and expense (legal fees, adjusting costs).
• Reserves — The amount the carrier has set aside for future expected costs on the claim. Open reserves indicate the claim isn't fully resolved.
• Incurred — Paid + Reserves. This is the total estimated cost of the claim.
• Status — Open or Closed. Underwriters pay close attention to open claims with large reserves.

Key fields to check before submitting to an underwriter

1. Open claims with large reserves — These will draw immediate scrutiny. Be prepared to explain them.
2. Loss ratio — Calculate total incurred / total premium. Above 60% is a concern for most lines.
3. Claim frequency trends — Are claims increasing year over year? A frequency spike needs context.
4. Valuation date — If the valuation date is more than 90 days old, the data may be stale. Request an updated loss run.
5. Missing years — If you requested five years and only three are shown, follow up with the carrier.

How AMs read a loss run quickly

Experienced account managers develop a rapid-scan technique:

1. Check the total incurred line first — is this a clean account or a problem account?
2. Count the number of open claims — open claims signal ongoing exposure
3. Look at the largest individual claim — is there a catastrophic event driving the numbers?
4. Scan for frequency patterns — multiple small claims in the same year suggest operational issues
5. Note any subrogation or recovery amounts — these reduce the net loss figure

Red flags that trigger underwriter questions

• Loss ratio above 70% (especially if trending upward)
• Multiple open claims with reserves exceeding $25,000 each
• Repeat claims of the same type (e.g., three slip-and-fall claims in two years)
• Claims activity in the most recent policy year significantly higher than prior years
• Large IBNR exposure on long-tail lines (workers' comp, professional liability)