Guide: loss history window
Five years of loss runs: why markets ask for them and what to do about gaps
Markets usually ask for five full policy years plus the current term, enough to separate one bad year from a pattern. When a year is missing, ask the carrier that was on risk for it, or document why it cannot be obtained.
General information, not advice. This is not insurance, legal or financial advice. Requirements differ by carrier, state and market; follow the instructions of the market you are approaching.
Why five
A convention, not a rule
Underwriters want enough history to tell one bad year from a pattern. Liability and workers' compensation claims can take years to settle, so recent years are still developing and older years show where claims ended up. Small or newer accounts may be asked for fewer years, and some classes or excess layers for more. Follow the market's instructions.
Count years, not reports. The target is five policy years plus the current term, each tied to the carrier that was on risk, and each valued recently enough for the market. See the valuation date.
Steps
How to assemble five years
Most delays come from years that nobody listed.
- List every policy termWrite down each term in the window with carrier, policy number and line. Use the policy files, the prior broker's records and the application.
- Request a report per carrierAsk each carrier for currently valued loss runs covering the terms it wrote. The request letter has wording, and the currently valued guide covers timing.
- Match the reports to your listCheck each report's policy periods against the list. A term on your list that is on no report is a gap.
- Chase gaps by another routeTry the prior broker, the insured, the successor carrier or the claims administrator, and keep a record of each attempt.
- Tie out and note what remainsCheck each term's total against the carrier's printed figure. Put any year you could not obtain in the cover note, with the reason.
Reference
Gaps and carrier changes: what to ask for
| Situation | What to request | Note |
|---|---|---|
| Same carrier throughout | One report covering every term, currently valued | Ask that each term print with its totals |
| Carrier changed | A report from each carrier for the terms it covered | Do not rely on the current carrier for earlier years |
| Carrier merged or renamed | A report from the successor | Name both the old and the new carrier in the request |
| Carrier in run-off or insolvent | Find out who now holds its claims records, such as a run-off administrator, a receiver or a guaranty association | What exists, and how to ask, differs by state |
| Self-insured, captive or TPA | The administrator's loss run for each term | Check whether amounts sit above or below a retention |
| A year with no claims | A report or letter stating that no claims were reported | A blank year looks like a missing year |
| Under five years in business | Everything since inception, plus a signed statement for any uninsured period | See the new ventures guide |
Pitfalls
What goes wrong
- A no-claims year left off the report. Some carriers print only years with claims. Ask them to state the empty year.
- Counting reports, not years. Two carriers in one year give two reports for one year, and one report can cover five.
- Policy years that are not calendar years. A July 1 term spans two calendar years. Keep the policy dates as printed.
- An old report reused for the earlier years. It was valued long ago, and the market will see the date.
- The current term dropped. It is partial, but it is part of the picture, and markets usually ask for it.
The tool
How LossRun Pro helps
LossRun Pro lists each policy year it read in the policy-year summary, so you can set the rows against your list of terms; it does not look for gaps itself. A period printed as "no claims" is listed as a zero-claim period, and tied to zero when the report prints a zero total. Up to twelve loss runs join one schedule, with the source file named on each row, and a claim number repeated across uploads is flagged. Start on the loss run to Excel page. Free: 1 file per day, up to 10 pages, no account. Files over 10 pages are converted up to page 10 on the free allowance; a page code converts the whole file, up to 150 pages. See pricing.
FAQ
Questions about five years of loss runs
Why do markets ask for five years of loss runs?
Five is a convention. It gives an underwriter enough history to tell one bad year from a pattern, and long-tail claims in liability and workers' compensation can take years to settle, so recent years are still developing.
Is it five years plus the current term?
That is the usual request. Some markets ask for three years on small accounts, and some lines ask for more. Confirm in the submission instructions, and if you are unsure, request the longer span.
What if the business is less than five years old?
Provide everything since inception, plus any predecessor or owner history the market asks for. See loss runs for a new business with no history.
What if a prior carrier will not respond?
Ask the insured to request its own records, try the prior broker, and log each attempt. Response-time rules differ by state, and this guide is not legal advice. Put the attempts in the cover note.
How do I show a year with no claims?
Enter the year with zero claims and zero amounts, backed by a report or letter that says no claims were reported. A blank row looks like a gap.
Should all five years be valued on the same date?
Ideally close to it, but carriers rarely share one. List each report's valuation date. See loss run valuation date.