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).
Next Up
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
-
Earned Premium
Earned premium is a pro-rated amount of paid-in-advance premiums ... -
Guaranteed Cost Premium
Premiums charged for an insurance policy that are not adjusted ... -
Advance Premium
An advance premium is an initial premium paid to bind an insurance ... -
Premium
Premium is the total cost of an option or the difference between ... -
Premium Balance
The amount of premium that is owed to an insurer for a policy, ... -
Net Premium
Net premium is the expected present value of a policy’s benefits ...
Related Articles
-
Financial AdvisorUnderstanding Life Insurance Premiums
When buying permanent life insurance, what amount of premium should you pay for the coverage? -
InsuranceTax Incentives for Biz Owners With LTC Insurance
Tax deductions for long-term care insurance premiums are often overlooked by small business owners. -
InsuranceFor Life Insurers, Making Money Is A Numbers Game
Life insurance is a data-driven industry that relies on complex financial models to predict future expenses and income from premiums and investments. -
InsuranceInsurance: A Common Personal Finance Pitfall
Making decisions about insurance can be challenging. But declining coverage altogether comes with it's own risks, and costs. -
Insurance5 Ways to Lower Life Insurance Premiums
Learn several effective methods for lowering life insurance premiums. These include quitting smoking and considering term life insurance. -
InsuranceCan Going to the Gym Lower My Insurance Premiums?
Find out whether a gym membership and living a healthier lifestyle can lead to lower insurance premiums or other financial rewards. -
InsuranceLife Insurance Premium Financing: Worth the Risk?
Life insurance premium financing lets high net worth individuals buy costly insurance without liquidating assets. -
InvestingWhat is a Share Premium Account?
The share premium account is an equity account found on a company’s balance sheet. -
InsuranceUnderstanding Your Insurance Contract
Learn how to read one of the most important documents you own, your insurance contract.
RELATED FAQS
-
When is mortgage insurance tax deductible on rental property?
Discover when mortgage insurance premiums are allowed to be deducted on your taxes for rental properties and see an example ... Read Answer >>