Basic financial metrics

For a benchmark, the values in the following table are calculated by the average-of-averages methodology described in "Overview of Compare."


Metric	Description
Indemnity Incurred	One of the following values: The mean indemnity paid if, depending on the metric level, the exposure or claim is closed. The reserves plus non-eroding indemnity payments, not including loss adjustment expenses, if the exposure or claim is open. Note: A non-eroding indemnity payment is a payment not expected at the time of reserve, and which is not deducted from the reserve as most payments are. Comparing your data against a benchmark enables you to discern differences between your company and others. The differences might be attributable to differences in claims philosophy, in underwriting, or in vendors.
Indemnity Paid	Mean indemnity paid, not including loss-adjustment expenses. Comparing your data against a benchmark enables you to discern differences between your company and others. The values are actual payments rather than paymenets plus reserves.
Indemnity Paid as % of Indemnity Incurred	Indemnity paid divided by indemnity incurred, multiplied by 100. The value indicates the outstanding value.
Expenses Paid	The mean expenses paid in U.S. dollars, including loss adjustment and all other expenses. Use this metric to compare your claims-processing costs to a benchmark.
Recoveries Received	Mean recoveries received of all types, in dollars, including loss recoveries and deductibles. Use this metric to compare your recovery costs to a benchmark.