Synonym for severity: total cost divided by claim count, a key indicator for monitoring claims inflation.
Average claim cost is the ratio of total incurred losses to claim count. It is a severity measure used in operational loss monitoring. Its evolution over time is a key claims inflation indicator: rising average cost without rising frequency signals unit cost inflation (materials, labor, social inflation). Average cost can be tracked by claim category, accident year, or geography. It is sensitive to large losses and portfolio mix changes. A distinction is drawn between settled average cost (closed claims only) and estimated average cost (including reserves on open files).
2022 average cost: 2,800 EUR. 2023 average cost: 3,100 EUR. A 10.7% rise in one year without frequency increase → materials inflation signal to incorporate in pricing review.
average cost, sinistre moyen, average claim, coût moyen par sinistre