Loss Run Red Flags Before Insurance Renewal
A loss run does not need to be perfect to be explainable. The renewal problem is when claims history contains red flags that no one has prepared a clear story for.
High open reserve pressure
Open reserves can signal uncertainty. If several claims remain open with material reserves, prepare commentary on status, expected development, legal involvement, and whether reserves have stabilized.
One or two large losses
Large losses can dominate the renewal story. The useful question is whether they were isolated events, whether controls changed afterward, and whether similar losses could happen again.
Many small recurring claims
Frequency can matter as much as severity. Repeated small claims may suggest maintenance, training, process, fleet, premises, or customer-safety problems. Underwriters may see this as a pattern, not noise.
Loss ratio without context
A high loss ratio needs explanation, but a low loss ratio can also be misleading if exposure has changed. Always connect claims to premium, payroll, revenue, vehicles, locations, or other exposure bases.
Missing claim descriptions
Claim numbers and amounts are not enough. Short cause-of-loss notes help brokers, insurers, and risk teams understand whether claims are random, operational, preventable, or already addressed.
Use a clean loss run structure
Download the loss run CSV template, then analyze the file in the Loss Run Analyzer to calculate claim count, severity, open reserves, large losses, and loss ratio.