What can a loss run report indicate to an insurer?

A loss run report is a critical document used by insurers to assess the history of claims made by a policyholder during a specified period. This report provides details on the frequency and severity of claims, which are vital for determining the risk level associated with an individual or business.

Insurers rely on this information to make informed decisions about underwriting policies, setting premiums, and determining the overall insurability of the applicant. A policyholder with frequent or severe claims may be deemed higher risk, influencing both the policy terms offered and the pricing. Conversely, a clean loss run report, indicating few or no claims, can signal lower risk, potentially leading to more favorable policy conditions.

The other options, while relevant in a broader context, do not directly relate to the primary focus of a loss run report. Customer satisfaction, marketing strategies, and advertising effectiveness are typically assessed through other methods, such as surveys or market analysis, rather than through claims history data.