Accident-Year Statistics

What Does Accident-Year Statistics Mean?

Accident-year statistics are used by insurance companies to measure the percentage of incoming premiums that are later paid out in loss claims.

Insuranceopedia Explains Accident-Year Statistics

Accident-year statistics compare earned premiums and exposures with losses incurred during a specific fiscal or calendar year. This means that accident-year experience is fully earned within 12 months, regardless of the effective date of the underlying policies. These statistics are a valuable tool for setting premiums for the following year. By monitoring and analyzing trends in accident-year statistics, insurance companies can predict the likely extent of their losses.