Burning Cost
The burning cost is the ratio of incurred losses within a specified amount in excess of the theoretical amount of premium it would take only to cover losses.
Terjemahan:
biaya pembakaran
Biaya pembakaran adalah perbandingan kerugian yang terjadi dalam jumlah tertentu yang melebihi jumlah premi teoritis yang diperlukan hanya untuk menutup kerugian.
A method of calculating the premium for reinsurance whereby within certain limits, the reinsurance premium paid by a cedant is related to the claims made under the policy. The adjustment factor works to the advantage of the reinsurer until the maximum level of reinsurance premium is reached.
Suatu cara penghitungan premi reasuransi di mana dalam batas tertentu, premi reasuransi yang dibayarkan oleh cedant berkaitan dengan klaim yang dibuat berdasarkan polis. Faktor penyesuaian menguntungkan perusahaan reasuransi sampai tingkat maksimal premi reasuransi tercapai.
What Is the Burning-Cost Ratio? In the insurance sector, the term “burning-cost ratio” refers to a metric that can be calculated by dividing excess losses by the total subject premium.