1 Friction Gap [noun] The impact of imperfect processes, systems, and business practices on both the loss and expense ratios. Defining the Friction Gap is easy, fixing it takes vision, time, dedication and resources. It’s also not a “One and Done” solution. It requires adopting a new mindset of “continuous improvement”, without which friction will once again reassert itself. The Friction Gap is defined as “The impact imperfect processes, systems and business practices have on both expenses and underwriting results.” Defining the Friction Gap PS ADVISORY: Closing the Friction Gap