TLR — Claims Outlay
70% of premium pays claims
Admin Fees — Admin Outlay
30% covers admin & expenses
TLR · Claims Outlay
Maximum claims the insurer will pay
$35,000
70% of annual premium
Admin Fees · Admin Outlay
Insurer expenses, tax & commission
$15,000
30% of annual premium
Dollar Breakdown — Visual
TLR Claims Outlay
$35,000
Admin Fees Outlay
$15,000
Premium Allocation at a Glance
Admin Fees — Admin Outlay
Total Annual Premium
$50,000
What is Target Loss Ratio (TLR)?
TLR is the insurance company's projected profit point for the extended health and dental benefits of your employee benefit plan. It represents the maximum dollar amount of claims paid, expressed as a percentage of your premium. Every insurer has expenses — claims administration, tax, commissions, printing — which are bundled into the remaining percentage (the Admin Fee). A higher TLR generally means more of your premium goes toward actual claims. TLR typically falls between 60% and 80%.