What is a 'loss run report'?

A loss run report is indeed a summary of an insured’s claims history. This document typically details all claims that have been filed by the insured over a specified period, including the nature of each claim, the amounts paid, and any open claims that are still being processed. Insurers and agents utilize loss run reports to assess the risk associated with insuring a particular client.

This report serves multiple purposes: it helps potential insurers evaluate the historical loss experience of an applicant, which can impact underwriting decisions and premium pricing. A claims history that shows few or no past claims can be an indicator of lower risk, potentially leading to better rates, whereas a history with frequent claims may suggest higher risk and could result in increased premiums.

In contrast, the other options describe different insurance-related documents or reports. A document outlining policyholder responsibilities focuses on what is expected from the policyholder regarding coverage maintenance, claims reporting, and other obligations. A report on underwriting guidelines pertains to the criteria insurers use to evaluate the insurability of applicants and determine premium rates. Lastly, an analysis of market trends would involve examining broader industry trends rather than individual claims experience. Understanding the distinction between these various reports is essential for navigating the insurance landscape effectively.