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Underwriting6 min read

How to read a loss run report

Loss runs are one of the first things an underwriter asks for on any commercial account. Knowing how to read them — and how to present them — is one of the most useful skills an independent agent can have.

What is a loss run report?

A loss run is a claims history report issued by an insurance carrier. It shows every claim filed on a policy during a specified period — typically the past 3 to 5 years. Underwriters use loss runs to evaluate risk before quoting a new policy or renewing an existing one.

Loss runs are produced by the current or prior carrier. Your client needs to request them — the carrier is required to provide them, usually within 10 business days.

What does a loss run include?

Every loss run format looks slightly different depending on the carrier, but they all contain the same core fields:

Policy period: The start and end date of the policy year the claims fall under.
Date of loss: When the incident occurred — not when the claim was filed.
Date reported: When the claim was reported to the carrier.
Claim number: The carrier's internal reference for that specific claim.
Type of loss: The coverage line the claim falls under — GL, property, auto, workers comp, etc.
Description of loss: A brief description of what happened.
Status: Whether the claim is open, closed, or reserved.
Paid amount: What the carrier has already paid out on the claim.
Reserved amount: What the carrier expects to pay in the future on open claims.
Total incurred: Paid + reserved. This is the number underwriters use to evaluate severity.

What underwriters focus on

When an underwriter reviews loss runs, they're looking at three things:

  • Frequency — How many claims has this account had? One large claim is less concerning than five small ones. High frequency suggests a systemic problem with how the business operates.
  • Severity — What is the total incurred on each claim? A single large loss can trigger rate increases or non-renewal. Multiple large losses will likely result in a declination.
  • Trend — Are claims getting better or worse over time? An account with improving loss history is a much easier sell than one with increasing claims year over year.

Open vs. closed claims

Pay close attention to open claims. A claim listed as "open" with a large reserve means the carrier hasn't finished paying it out. Underwriters treat reserved amounts as real money — a $50,000 reserve on an open claim is treated the same as a $50,000 paid claim.

If your client has open claims, get a status update from the prior carrier before submitting. Sometimes reserves are inflated and a current status letter can dramatically change how the account looks to a new carrier.

How to present adverse loss history

Don't just attach bad loss runs and hope for the best. A cover letter or statement of facts explaining the circumstances of large claims can make a significant difference:

  • Was the loss a one-time event unlikely to repeat? Say so.
  • Has the client made operational changes since the loss? Document them.
  • Was the claim the result of a third party's negligence? Explain the subrogation status.
  • Is a large open claim expected to close soon? Get a status letter from the adjuster.

Underwriters appreciate agents who show up prepared with context, not just raw data.

Loss runs and the intake process

One of the most common submission delays is waiting on loss runs. They have to be requested from the prior carrier, and carriers can take days to respond. The earlier you request them in the intake process, the better.

When gathering client information, always ask about prior carriers and policy numbers upfront so you can request loss runs at the same time you're collecting the rest of the application data.

Collect prior carrier info automatically

AgencyAssist asks your client for prior carrier, policy number, and loss history as part of the intake form — so you have everything you need to request loss runs on day one.

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