{
  "slug": "cargo-claim-loss-ratio",
  "title": "Cargo Claim Loss Ratio Calculator",
  "heading": "Cargo Claim Loss Ratio Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/cargo-claim-loss-ratio",
  "summary": "Claims paid as a share of cargo premium — a key renewal metric.",
  "description": "Underwriters price your next cargo insurance renewal largely off your loss ratio — total claims paid divided by total premium collected over a policy period. A loss ratio under 40% typically signals a good renewal with flat or reduced rates; above 60-70% often triggers a rate increase or non-renewal. This calculator computes your loss ratio from claims paid and premium, and estimates likely renewal premium direction so you know what to expect and can start shopping alternatives before a bad renewal surprises you.",
  "formula": "Loss ratio = total claims paid ÷ total premium paid, over the same period.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=cargo-claim-loss-ratio",
  "inputs": [
    {
      "id": "claimsPaid",
      "label": "Total claims paid (period)",
      "kind": "number",
      "hint": null,
      "default": 8000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "premiumPaid",
      "label": "Total cargo premium paid (period)",
      "kind": "number",
      "hint": null,
      "default": 14000,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "numClaims",
      "label": "Number of claims filed",
      "kind": "number",
      "hint": null,
      "default": 2,
      "unit": null,
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "ratio",
      "label": "Loss ratio",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "avgClaim",
      "label": "Average claim size",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "netMargin",
      "label": "Premium minus claims paid",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Total claims paid (period): 8000 $",
      "Total cargo premium paid (period): 14000 $",
      "Number of claims filed: 2"
    ],
    "outputs": [
      "Loss ratio: 57.1%",
      "Average claim size: $4,000",
      "Premium minus claims paid: $6,000"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter total claims paid (period) ($).",
      "Enter total cargo premium paid (period) ($).",
      "Enter number of claims filed.",
      "Read your loss ratio on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "claimsPaid": 4800,
        "premiumPaid": 8400,
        "numClaims": 1
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "claimsPaid": 8000,
        "premiumPaid": 14000,
        "numClaims": 2
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "claimsPaid": 12800,
        "premiumPaid": 22400,
        "numClaims": 3
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What loss ratio is considered good?",
      "a": "Under 40% is generally viewed favorably by underwriters and often supports flat or reduced renewal pricing. 40-60% is neutral. Above 60-70% typically triggers a premium increase, higher deductible requirements, or in repeated cases, non-renewal."
    },
    {
      "q": "Why does the insurer care about my ratio and not just total claims?",
      "a": "Loss ratio normalizes claims against how much premium they collected from you, so a large fleet with $10,000 in claims against $200,000 in premium looks very different from a small fleet with the same $10,000 in claims against $12,000 in premium."
    },
    {
      "q": "How can I improve my loss ratio before renewal?",
      "a": "Tighten load securement training, use tracking/temperature monitoring on sensitive freight, review claims for patterns (same lane, same commodity, same driver), and consider raising your deductible to reduce how many small claims you file, since frequency matters as much as severity to underwriters."
    },
    {
      "q": "Does one large claim ruin my ratio permanently?",
      "a": "It affects the current and often the next 1-2 renewal periods depending on how the insurer weights trailing history (commonly 3-year lookback), but a clean claims record afterward gradually restores your standing."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/insurance-cost-per-power-unit",
    "https://www.revenuelab.fyi/toolbox/dot-compliance-cost",
    "https://www.revenuelab.fyi/toolbox/owner-operator-cost-per-mile"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Cargo Claim Loss Ratio Calculator (https://www.revenuelab.fyi/toolbox/cargo-claim-loss-ratio)"
}