Target Loss Ratio: How It Affects Your Benefit Plan

Insurance & Taxes

What is a Target Loss Ratio?

Target Loss Ratio(TLR) is the amount of premium the Group Benefits provider grants to the payment of claims. It is also referred to as the Acceptable Loss Ratio

How TLR is Determined

  • It is primarily determined by the number of lives on the plan and the amount of premiums.
  • Changes in premium at renewal generally do not effect the TLR unless the number of employees at the company has been reduced significantly. In this case there might be a slight variance in the TLR %.

Clear Benefits TLR

  • Experience-rated Program: regardless of the size of account, ClearBenefits.ca provides advisors with a TLR net of commissions (subject to provincial premium taxes)
  • Advisors build in their commission rate, which directly affects the TLR.
  • A 10% commission rate is most common for experience-rated plans

        If you would like further clarification about the Target Loss Ratio of your plan, please call us and we would be pleased to discuss this with you. 

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