DEFINITION of 'Calendar Year Experience'

The underwriting result based on earned premiums and booked incurred losses for the same calendar-year accounting period. This term is used in the insurance industry to signify an insurance company's "experience" during a calendar year, in terms of the premiums earned and the losses incurred. Losses incurred refer to claims paid out during the year and changes to the loss reserves.



Also referred to as accident year experience and underwriting year experience.

BREAKING DOWN 'Calendar Year Experience'

Underwriting can be defined as the process of insuring someone. Insurance underwriters usually assess a client, decide how much coverage the client should receive, how much the clients should pay for the coverage or whether to accept the risk and insure them. Underwriting involves measuring risk exposure and determining the premium that needs to be charged to insure that risk.

RELATED TERMS
  1. Underwriting Risk

    Underwriting risk is the risk of loss borne by an underwriter ...
  2. Underwriting Income

    Profit generated by an insurer's underwriting activity over a ...
  3. Accident Year Experience

    Premiums earned and losses incurred during a specific period ...
  4. Adjusted Underwriting Profit

    The profit that an insurance company generates after paying out ...
  5. Losses Incurred

    Benefits paid to policyholders during the current year, plus ...
  6. Underwriter

    An underwriter is a company or other entity that administers ...
Related Articles
  1. Insurance

    Is Insurance Underwriting Right For You?

    If you have excellent analytical skills and an eye for detail, this may be your calling.
  2. Insurance

    What is Underwriting?

    Underwriting is a term most often used in investment banking, insurance and commercial banking. Generally, underwriting means receiving a remuneration for the willingness to pay for or incur ...
  3. Financial Advisor

    All About Impaired Risk Annuites and Insurance

    What are impaired risk insurance products and understanding life insurance rate classes, table ratings and flat extra premiums.
  4. Insurance

    Explaining Insurance

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

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  6. Insurance

    How to Keep Life Insurance Costs Down

    Curbing all costs and expenses is a priority for most people and buying life insurance is no different. Here's how to go about it.
RELATED FAQS
  1. How does insurance underwriting differ from investment underwriting?

    Understand the difference between insurance underwriting and investment underwriting, including what types of risks an underwriter ... Read Answer >>
  2. What is the difference between underwriting and investment income for an insurance ...

    Learn more about insurance companies' investment and underwriting incomes. Read about how investment incomes and underwriting ... Read Answer >>
  3. What are examples of risks for all underwriter types?

    Learn about the risks faced by different types of underwriting activity. Explore specific examples of risks faced by insurance ... Read Answer >>
  4. How do I become an underwriter?

    Learn about the education, training and certification required to become an insurance underwriter as well as the important ... Read Answer >>
  5. 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 >>
Hot Definitions
  1. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  2. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  3. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  4. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center