What is the purpose of a "loss run report"?

A loss run report serves an essential function in the insurance industry by providing a detailed history of claims made by the insured. This report typically includes information such as the type of claims, the amounts paid, reserves set aside for outstanding claims, and the status of each claim. It offers insurers useful insights into an insured’s past performance and risk profile, which are crucial when underwriting policies or determining premiums.

The history encapsulated in a loss run report allows underwriting professionals to assess the frequency and severity of claims, helping them understand the insured's risk management practices and potential liabilities. By evaluating this information, insurers can make informed decisions about coverage limits, policy terms, and pricing, ultimately leading to better risk assessment and management for both the insurance company and the insured.

This report does not focus on listing potential risks alone, preventing future claims directly, or summarizing market trends, which are aspects more aligned with risk assessment and industry analysis rather than the specific function of a loss run report.