What is the purpose of a loss run report?

A loss run report serves as a vital tool in the insurance industry, specifically used to provide a comprehensive history of claims made by a policyholder over a specified period. This report includes details such as the number of claims, dates of losses, the amounts paid out, and outstanding claims, among other relevant information.

The significance of the loss run report lies in its ability to inform underwriters about the risk profile associated with an individual or organization seeking insurance coverage. By reviewing the claimant's history, insurers can better assess potential risks and determine if they will provide coverage, as well as what premium rates would be appropriate.

It is especially critical in the context of renewal of insurance policies, as it offers insights that can lead to adjustments in premiums based on the loss history and associated risk. Therefore, understanding the purpose and content of a loss run report is essential for both policyholders and adjusters in effectively managing claims and insurance negotiations.