Use the chart below to answer the following question regarding the financial performance of this insurer.

Earned Premium	$ 25,000
Underwriting Expenses	$ 4,000
Loss Adjustment Expenses	$ 500
Incurred Losses	$ 20,000
Investment Return	6%

After researching the insurance market in your sector, you have determined that the loss ratio you calculated is relatively high when compared to competitors. Explain what this means and what is likely to be causing this.