Management usually wants to know how much it pays out on average for every insurance claim someone files. This is the company's cost per claim. The cost per claim is the total cost incurred for every claim divided by the total number of claims filed. YTD stands for year to date. This means you are looking at all the claims filed up to today, so the statistic calculates everything for the current year up to the current date.

Step 1.

Count up all the claims filed so far this year. For example, a company might have 340 claims filed as of today.

Step 2.

Add together the amount the company paid out for each claim. In the example, the company might pay out a total of $300,000.

Step 3.

Divide the amount the company pays out by the number of claims. In the example, $300,000 divided by 340 claims equals a year to date cost per claim of $882.36. This means on average, the company pays $882.36 each time someone files a claim.