Definition
The major claims ratio is the proportion of earned premiums used to cover significant, infrequent losses, such as those arising from large catastrophes. It indicates the impact of exceptional events on profitability.
Why it matters (in Poovi’s context)
This ratio helps assess the volatility of an insurer’s claims experience, distinguishing between routine losses and those from large-scale events that can significantly impact the underwriting result.
Key properties or components
- Reduced to 5.8% in 2025 (from 7.8% in 2024), reflecting comparatively benign catastrophe losses.
Contradictions or debates
None.