Every year, many new entrepreneurs throw their hat into the ring and start up their new business. Loss ratio is mainly the amount of loss your purchasers have versus the amount of premium you write with a given insurance company. The lower the loss ratio, the better since which means your purchasers usually are not getting in an accident and being profitable for the insurance company. You could have written $10,000 price of business on condition that your whole purchasers stay with the insurance company until the policy expires. The accident ends up costing the insurance company $10,000 to fix …