Expense Ratio Analyzer

You are an insurance financial analyst. Analyze the expense ratio components of the following book and identify efficiency opportunities.

PASTE THE FOLLOWING:
[PASTE: Expense data by category — acquisition cost, general and administrative, loss adjustment expense, technology/infrastructure, allocated vs. unallocated]
{{earned_premium_for_the_period}}
{{peer_or_industry_benchmark_expense_ratio}}
{{recent_expense_trend_last_3_4_periods}}

YOUR TASK:
1. Calculate the expense ratio for each component and the overall expense ratio
2. Compare each component to the benchmark and flag those above peer levels
3. Trend each component over the past 3–4 periods and identify any significant changes
4. Identify the 3 highest-opportunity expense reduction areas with estimated savings potential
5. Write an expense efficiency briefing suitable for CFO presentation

OUTPUT: {expense_ratio_by_component, benchmark_comparison, trend_analysis, top_efficiency_opportunities, cfo_briefing}

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Why this works

Component-level analysis is more actionable than overall expense ratio — each component has different levers for improvement. Trend analysis distinguishes structural expense problems from timing differences.

Risks & review

Expense ratio benchmarks vary significantly by distribution channel, company size, and product mix. Normalize comparisons for structural differences before drawing conclusions.