Glossary · Insurance agency commissions
Loss run
A loss run is a report from an insurer listing the claims on an insured’s policies over a period, with dates, amounts paid and reserves; agencies request them to market and renew commercial accounts.
What it means
IA Magazine’s 5 Tips to Procure Loss Runs in a More Timely Manner describes the problem every commercial agency knows: “Getting a copy of the insured’s claims history—a loss run or a loss run report—can be a frustrating and often fruitless chore for agencies trying to grow their commercial lines business.” The article recommends to “follow up with a second request to the carrier five to 10 business days after the initial request.”
How it works: the agency, with the insured’s authorization, asks the current carrier for loss runs and submits them with applications to other carriers. Underwriters use them to price the account, and the same history feeds the experience mod on workers’ compensation.
Why it matters for agency commissions
Loss runs decide whether you can quote, and at what premium, which sets the commission you earn. They also sit behind profit-sharing: an agency’s loss ratio with a carrier is built from the same claims. A late loss run can cost a renewal; a bad one can cost a contingent payment.
How it shows on a commission statement
A loss run never appears on a commission statement. Its effect does: the premium on the renewal or new-business line it priced, and, once a year, the contingent commission tied to your loss ratio.
Example
- Earned premium, 3 years
- $90,000.00
- Claims paid and reserved
- $27,000.00
- Loss ratio
- 30%
- Renewal premium quoted
- $31,500.00
- Commission at 12%
- $3,780.00
Common mistakes to check
- Requesting loss runs too close to the renewal date.
- Not following up on a loss run request, so the account is marketed without one.
- Assuming open reserves are final; they can change before profit-sharing is calculated.
Questions
What is a loss run in insurance?
A report from the insurer listing an insured’s claims over a period, with dates, payments and reserves, used to underwrite and price coverage.
How do I get a loss run report?
Ask the current or former carrier, with the insured’s authorization. IA Magazine suggests following up five to 10 business days after the first request.
Why does a loss run matter to the agency?
It decides whether an account can be quoted and at what premium, and the same claims feed the loss ratio behind contingent commission.
Sources
- IA Magazine, 5 Tips to Procure Loss Runs in a More Timely Manner, July 7, 2022. Retrieved October 14, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: loss ratio.