what is the difference between an incurred loss and an lae 
incurred loss is simply the amount of money an insurance company paid out in claims loss adjusted expense meanwhile is the expense associated with investigating and settling those claims the bottom lineloss adjustment expenses are the expenses that insurance companies incur during the investigation and handling of claims examples of loss adjustment expenses include costs for investigators adjusters attorneys and mediators the combined ratio the formula for which includes loss adjustment expenses compares expenses to earned premiums and is used as a metric for profitability by the insurance industry 