What is the primary purpose of a "loss run" report?

The primary purpose of a "loss run" report is to detail a policyholder's claims history. This document provides a comprehensive overview of all claims made by a policyholder over a specified period, including dates, amounts, types of claims, and outcomes. Loss run reports are crucial for underwriters in assessing the risk associated with renewing a policy or issuing a new one, as they help evaluate the claim frequency and severity associated with the policyholder. By analyzing this historical claims data, insurers can make informed decisions about coverage options and pricing, facilitating better risk management.

This understanding of a policyholder's claims history is essential for both risk assessment and the underwriting process, making the loss run report a vital tool in the insurance industry.