Which of the following determines if an insurance company has experienced an underwriting loss or profit?

The determination of whether an insurance company has experienced an underwriting loss or profit is primarily assessed through the use of loss ratios. The loss ratio is calculated by taking the total losses incurred (i.e., claims paid) and dividing it by the total premiums earned within a specific period. This ratio provides insight into the effectiveness of the company's underwriting practices; a loss ratio greater than 100% indicates that the company is paying out more in claims than it is earning from premiums, resulting in an underwriting loss. Conversely, a loss ratio under 100% suggests that the company is profitable in its underwriting operations.

Focus on claims processing time, customer satisfaction ratings, and market share provides valuable insights into other aspects of the insurance business but does not directly reflect the profitability from underwriting alone. While market share indicates the company's competitive positioning and growth, and customer satisfaction ratings can influence customer retention and new business acquisition, neither measure assesses the core financial performance related to underwriting specifically. Similarly, claim turnaround time is important for operational efficiency and customer service, but it does not provide a measure of profitability.