Accident-Year Statistics

DEFINITION of 'Accident-Year Statistics'

A statistic used by insurance companies to gauge what percentage of the premiums received are being paid out in claims. Accident-year statistics are a measure of the total losses against the total revenue (both deductibles and premiums).

BREAKING DOWN 'Accident-Year Statistics'

It is a useful tool with regards to setting the premiums for the following year. In watching the trends of the accident-year statistics, insurance companies are able to forecast what their losses are likely to be, and therefore, decide what premiums to charge in order to make a profit.

RELATED TERMS
  1. Loss Ratio

    The difference between the ratios of premiums paid to an insurance ...
  2. Basic Premium Factor

    The acquisition expenses, underwriting expenses and profit, as ...
  3. Written Premium

    An accounting term in the insurance business used to describe ...
  4. Guaranteed Cost Premium

    Premiums charged for an insurance policy that are not adjusted ...
  5. Earned Premium

    The amount of total premiums collected by an insurance company ...
  6. Premium Balance

    The amount of premium that is owed to an insurer for a policy, ...
Related Articles
  1. Economics

    Understanding Statistics

    Statistics provide the means to analyze data and then summarize it into a numerical form.
  2. Professionals

    Introduction to Life Insurance Taxation

    Introduction to Life Insurance Taxation
  3. Personal Finance

    Understanding Life Insurance Premiums

    When buying permanent life insurance, what amount of premium should you pay for the coverage?
  4. Taxes

    Tips for Reducing Health Insurance Expenses

    For many self-employed people, health insurance premiums can make up a hefty percentage of their budget. Here are some tips on how to deduct them.
  5. Professionals

    Introduction to Life Insurance

    Introduction to Life Insurance
  6. Investing Basics

    Explaining Premiums

    Premium has a few different meanings in the financial world.
  7. Insurance

    The Average Cost of Homeowners Insurance

    What factors into the the premiums you pay for homeowners insurance? Much depends on where you live. But there are ways to lower your rates.
  8. Rate Increases

    If you’ve read any news stories about long-term care insurance in the last few years, you’ve probably read horror stories about astronomical premium increases that left consumers ...
  9. Insurance

    Explaining Insurance

    Insurance is a form of contract between an individual and an insurance company that spreads risk in exchange for premium payments.
  10. Taxes

    Don't Miss These Tax Deductions

    Knowing the tax deductions you're entitled to can make or break your bank account. Do you know about all these insurance-related deductions?
RELATED FAQS
  1. How is my insurance premium calculated?

    An insurance premium is the money charged by insurance companies for coverage. Insurance premiums for services differ from ... Read Answer >>
  2. What caused the European / Eurozone debt crisis?

    Understand how insurance companies price insurance premiums, and learn the importance of data and statistics in the insurance ... Read Answer >>
  3. How do I calculate insurance premium tax?

    Find out how your health insurance premiums can affect your income taxes, including when you may be able to deduct premium ... Read Answer >>
  4. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage ... Read Answer >>
  5. Is it more important to have a low deductible or a low premium?

    Explore the balancing act that exists between insurance deductibles and premiums, and learn the primary factors to consider ... Read Answer >>
  6. How can I use the combined ratio to compare insurance companies?

    Learn more about the combined ratio, what it measures and how to use it to compare insurance companies. Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center