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. Insurance Underwriter

    An insurance underwriter is a professional who evaluates the ...
  2. Adjusted Underwriting Profit

    The profit that an insurance company generates after paying out ...
  3. Capital At Risk (CaR)

    The amount of capital that is set aside to cover risks.
  4. Underwriting Fees

    Underwriting fees are monies collected by underwriters for underwriting ...
  5. Cash Flow Underwriting

    A pricing tool used by insurance companies. Cash flow underwriting ...
  6. Calendar Year Accounting Incurred ...

    Calendar year accounting incurred losses is a term used in the ...
Related Articles
  1. 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.
  2. Insurance

    Bundle Your Insurance For Big Savings

    Bundling your insurance can save you money and time. Read on to see how get the most out of multiline insurance discounts.
  3. Insurance

    Answers to High-Risk Life Insurance Questions

    Do you have questions about obtaining life insurance if you are considered higher risk?
  4. Insurance

    Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.
  5. Insurance

    For 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.
  6. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
  7. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  8. Insurance

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
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 is the main business model for insurance companies?

    Read about the most important components of an insurance company business model, such as risk pricing, investing and claims ... Read Answer >>
  4. 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 >>
  5. Do underwriters make guarantees to sell an entire IPO issue?

    Underwriters represent the group of representatives from an investment bank whose main responsibility is to complete the ... Read Answer >>
Hot Definitions
  1. Risk Tolerance

    The degree of variability in investment returns that an individual is willing to withstand. Risk tolerance is an important ...
  2. Donchian Channels

    A moving average indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time ...
  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, ...
  4. Moving Average - MA

    A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out ...
  5. Stop Order

    A stop order is an order to buy or sell a security when its price increases past a particular point in order to limit losses ...
  6. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
Trading Center