The portion of an insurance rate used to cover claims and the costs of adjusting claims. Insurance companies typically determine their rates by estimating their future loss costs and adding a provision for expenses, profit, and contingencies.

"Loss Costs" In Context

"PALO ALTO, Calif. — Anacor Pharmaceuticals Inc. said Tuesday that its fourth-quarter loss grew from a year earlier as its revenue fell and its costs of developing treatments for fungal infections and skin diseases increased. Anacor said it lost $14.5 ..."