Loss Runs: What Underwriters See and Why It Matters

Underwriting5 min read

What a loss run contains

A loss run is the carrier’s report of your claims over a period, typically several years. It lists dates, descriptions, amounts paid, and amounts still reserved as expected future payment on open claims.

Open reserves count against you

Underwriters look at incurred losses — paid plus reserved. A large reserve on an open claim affects pricing even though nothing further may ultimately be paid. Reserves that are demonstrably overstated are worth questioning.

Frequency and severity say different things

Several small claims suggest a process or training issue. One large claim suggests exposure. Underwriters price these differently, and the explanation you provide should address the pattern actually present.

Context is part of the submission

A claim tied to an operation you have since discontinued, or one followed by a documented change in procedure, reads differently when explained. Loss runs submitted without narrative are interpreted without it.

Request them early

Carriers can take time to produce loss runs, and an incomplete history limits which markets will quote. Requesting them well ahead of renewal keeps the full market available.