What Does Accident-Year Statistics Mean?
Accident-year statistics are statistics used by insurance companies to measure the percentage of incoming premiums that is subsequently being paid out in loss claims.
Insuranceopedia Explains Accident-Year Statistics
Accident year statistics compares earned premiums and exposures with losses incurred in the course of a particular fiscal or calendar year period. This implies that accident year experience is fully earned in 12 months, despite the effective date of the underlying policies. Accident year statistics are a useful tool in setting the premiums for the following year. In watching and analyzing the trends of these statistics, insurance companies are able to predict what their losses are likely to be.