LAE

Loss Adjustment Expenses (LAE) are expenses directly related to a claims.

Allocated Loss Adjustment Expenses (ALAE) are expenses which can be allocated to a particular claim.

Unallocated Loss Adjustment Expenses (ULAE) which can not be allocated to a particular claim and is general in nature.

Examples:

ALAE: Fees paid to lawyers, experts, and investigators used to defend claims etc.

ULAE: Administrative claims handling expenses, employee salaries etc.