Definitions for "BURNING COST"
Keywords:  ceding, reinsured, gpi, premium, pure
The ratio of the reinsurance losses occurred incurred to the CEDING COMPANY's SUBJECT PREMIUM. Also PURE LOSS COST.
The ratio of actual (or "as if") reinsured losses to a ceding company's subject matter premium (either written or earned premium) for the same period. Used to analyze past experience and to predict future experience of a per-risk excess cover.
A term most frequently used in spread loss property reinsurance to express pure loss cost or more specifically the ratio of incurred losses within a specified amount in excess of the ceding company's retention to its gross premiums over a stipulated number of years. A-H · I-Q · R-Z