Burning-Cost Ratio

Wouldn't it be cool if there was an insurance industry Burning Man? If there was, then this'd be it.

But ok, ok...even insurance companies need to take out insurance policies at times. In a year of hurricanes, volcanoes, and floods, blight, rivers of blood, perpetual darkness, frogs, and so on...sometimes the amount of claims filed exceeds the premiums customers paid. So insurance companies take out a policy called “reinsurance” to cover any shortfalls during a catastrophic year.

The burning-cost ratio is a rating method they use to determine how much reinsurance they should buy based on past claims experience. They simply divide the amount of excess losses by total premiums to get the ratio. The more claims data available, the more accurate the burning-cost ratio will be.

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Finance: What is a Business Plan?6 Views

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Finance allah shmoop what is a business plan Well think

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of it like blueprints for building a home or a

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directions for toll house cookie baking or the process for

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howto you know get pregnant let's get down to business

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time anyway A business plan is just the game day

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strategy for how your little garage startup will grow to

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someday be a google or facebook or even little old

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shop You'll describe the product like a pill that cures

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cancer Yep some products are easy to describe Like if

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you actually had a pill that cures cancer while you'd

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pretty much be done you could have a one page

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business plan that just says i have a pill that

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cures cancer Your eight hundred seventy six people on whom

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it has worked Now give me billions of dollars and

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a nobel prize night and you'd be done But if

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you only had a flying car well then you describe

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it well How much weight it khun carrie how fast

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and far it goes how it navigates and avoids crashes

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and how it recharges and stuff like that That's the

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product then there's the place or distribution Like how you

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get the car out to the masses you want to

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sell it to like are you partnering and paying ford

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to stock it in their showrooms Are you leveraging starbucks

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places teo You know showcase it Get buzzed while you

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buzz about that Or do you just have a mail

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order website Customers pay with a credit card and a

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delivery agent applies it to your home You know kind

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of like tesla All right Next up promotion Like how

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do you market your product Or is it just so

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cool that the press writes about it endlessly fawning and

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all that digital ink is free Well if the products

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all over the covers of the new york times and

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yusa today well you're kind of marketed everyone in the

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country knows about it All right Well then there are

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the finances Like how much does a unit cost So

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this is all about price How much is the factory

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that stamps out the carriage The blades of the battery

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Well if you sell a hundred units a month you

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make what What should they be Priced at fifty grand

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Each one hundred two hundred fifty grand if you sell

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Ten thousand a month Well how much do you make

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How much capital do you need thio field all that

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get through your first two years and then how much

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do you need to raise beyond those first two years

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to get to break even profitability and and so on

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Is there a ny po in the future Yeah yeah

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what about that That should be in the plan Well

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there's a lot to figure out a lot of work

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to put together a business plan So you better get 00:02:27.7 --> [endTime] uh you know busy No

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