Last Updated on April 16, 2021
2. Keep a low ratio
If you are in the middle of your insurance renewal or trying to find an insurance company you like, keep in mind that they will ask to check your loss ratio. It’s important that you keep your ratio low, as this will enhance the insurer’s interest in your company. Higher ratios, on the other hand, may lead to the payment of higher rates. You might also be subjected to exclusions, have reduced limits, and see an increase in your deductibles. However, many factors weigh on what can be considered an acceptable loss ratio, depending on the insurance company.
