Definition:Loss history report

📋 Loss history report is a document—commonly known in the industry as a loss run—that summarizes an insured's prior claims experience over a specified period, typically three to five years. Insurers and brokers request these reports during the underwriting and renewal process to evaluate the risk profile of an applicant, verify representations made in the application, and inform pricing decisions. The report is generated by the insured's current or prior carriers and contains details on each claim, including dates, descriptions, paid amounts, outstanding reserves, and claim status.

⚙️ When an insured or its broker requests a loss history report, the incumbent insurer is generally obligated—or at minimum expected by market convention—to provide one within a reasonable timeframe. In the United States, many states mandate that carriers furnish loss runs within a set number of days upon written request. In the Lloyd's market and other international venues, bordereaux data and claims records fulfill a comparable function, although formats and delivery timelines vary. The report typically covers all open and closed claims under each policy, and a discerning underwriter will review not just the headline numbers but also the development trajectory of individual claims, the ratio of open to closed files, and any patterns suggesting systemic issues such as recurring workplace injuries or repeated property losses at a single location.

🔎 Beyond its immediate underwriting utility, the loss history report serves as a vital communication tool between market participants. It creates an auditable trail of an insured's claims track record, reducing information asymmetry between the party seeking coverage and the party assuming risk. Favorable loss history can unlock preferred pricing, higher limits, and broader coverage terms, while adverse experience may result in exclusions, higher deductibles, or outright declination. For large commercial and specialty risks, loss history reports often become central exhibits in submission packages circulated to multiple markets. The quality and completeness of these reports—how promptly they are delivered, how accurately they reflect incurred amounts, and whether they capture subrogation recoveries—can materially influence the competitiveness of the terms an insured receives.

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