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Accident Year Experience

The matching of all losses occurring (regardless of when the losses are reported) during a given twelve-month period of time (usually a calendar year) with all premium earned (regardless of when the premium was written) during the same period of time. More specifically, the total value of all losses occurring (losses paid, plus loss reserves, minus recoveries) during the defined twelve-month time period (i.e., the date of loss falls within the time period) is divided by the earned premium for this same exposure period. As the experience is developing, loss reserves are used in the calculation, but the ultimate result cannot be finalized until all losses are settled.  Schedule P of the Annual Statement is calculated on an Accident Year basis.