In rate making, "developed losses" include:

In rate making, developed losses encompass not just the losses that have already been paid out or are reported, but also the costs associated with handling those claims, known as loss adjustment expenses. This includes expenses that insurers incur to settle claims, such as legal fees, adjuster fees, and any other costs related to the process of investigating and resolving claims.

The concept of developed losses is crucial for insurers when evaluating how to set appropriate rates for their policies, as it provides a comprehensive picture of the total costs associated with claims. This approach helps insurers to ensure that they collect enough premiums to cover both the claims and the associated expenses, thus maintaining financial stability.

In contrast, reported losses alone would not give a complete view of the insurer's liability since they do not account for the additional costs incurred during the loss adjustment process. Similarly, disaster recovery costs and projected future losses can play significant roles in risk assessment and management but do not directly fall under the definition of developed losses as they pertain more to specific scenarios or forecasts rather than the broad category that includes all expenses incurred in settling claims.