Loss ratio compares insurance losses with the relevant premium base over a defined period. Depending on the report, losses may include claims incurred and claims expenses, while premiums may be earned rather than merely collected. A percentage is meaningful only when the measurement basis is clear.
A Nepalese insurer's high loss ratio could reflect catastrophe losses, pricing, or portfolio composition, rather than a simple judgement about service quality. Very low ratios also need context. Compare consistent periods and definitions, and distinguish this measure from a claim settlement ratio or customer complaint measure.