What is a common time frame covered in a loss run report?

A loss run report typically provides information on claims history for a specific period, making one year a common time frame for these reports. Insurers and brokers use this timeframe to analyze the claims frequency and severity over a significant, yet manageable duration, allowing them to see trends and patterns in losses and assess risk more effectively. A one-year period is advantageous because it balances providing sufficient data to draw insights while also being recent enough to reflect the current risk profile of the insured.

Additionally, while shorter periods like six months can be useful in specific contexts, they may not capture enough data for a comprehensive analysis. On the other hand, five years may provide too vast a snapshot to be manageable in evaluating current risks, and indefinite would create ambiguity about the relevance of the data. This makes one year a standard and practical choice for loss run reports in the insurance industry.