What does burning cost ratio mean?

burning cost ratio meaning in Law Dictionary

n insurance-industry calculation of excess losings split by complete topic advanced. The burning up price ratio is an experience-based insurance-rating method popular in determining rates for overabundance reduction reinsurance, or perhaps the insurance coverage that insurance firms purchase to safeguard by themselves against complete claims that go beyond their complete premiums collected.

burning cost ratio meaning in Business Dictionary

The proportion of losses that an insurer has to protect by agreement to premium earnings. In too much loss or disaster loss reinsurance plan, advanced income means gross advanced minus reinsurance expenses. For stop-loss reinsurance policies, advanced income is defined as earned advanced income.