Loss adjustment expenses concern costs of investigating, managing or settling claims under a reporting definition.
The distinction that matters
They are different from claim benefits paid, and allocation methods can affect comparisons between insurers.
What to check
- Check included expense categories.
- Read allocation and accounting notes.
- Compare consistent periods.
Example to discuss
An analyst checks whether legal defence costs are included in a reported expense figure before comparing insurers.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
Use the definition in the report being analysed. Changes in business mix, reinsurance, estimation and reporting methods can affect interpretation. These measures do not determine whether an individual claim is covered.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.