Loss History Analysis

Purpose

Alongside the structural and technical assessment, an exposure’s actual loss experience is one of the most informative bases for risk grading. Recurring small losses with the same cause often point to a systemic management deficiency that a single survey may not necessarily reveal.

Methodology

Loss reports and, where available, documented near misses are analysed by cause, location, cost trend and pattern over several years. Cross-referenced with outstanding improvement recommendations and survey reports, this reveals recurring weaknesses and their actual financial impact; for larger portfolios, the results also feed into experience rating and credibility models.

Insurance relevance

A robust loss history materially influences premium structuring, deductible selection and negotiating position at renewal, and serves underwriting as a cross-check against the findings of the risk survey. Incomplete or inconsistent loss records make a fair risk assessment more difficult and tend to push premiums upward.