Which of the following is NOT an element affecting loss trends?

The concept of loss trends in insurance refers to the various factors that can influence the frequency and severity of claims over time. Understanding these factors helps insurers predict future losses and set premiums accordingly.

Change in cost per claim, frequency of claims, and exposure all directly relate to losses. The cost per claim affects the total payout for each incident, influencing overall financial liability. Frequency of claims pertains to how often claims occur, directly impacting the insurer's risk assessment. Change in exposure relates to the level of risk the insurer is covering, such as the number of insured units or the value of property insured, which can also affect loss trends.

In contrast, interest rates, while important for the overall financial environment and investment returns for an insurance company, do not directly influence the core elements affecting the frequency or severity of insurance claims. Interest rates are more relevant to the financial management aspect of an insurance company rather than the operational or loss-related aspects. Thus, it stands out as the correct response since it does not fit within the primary elements that directly affect loss trends in the context of insurance operations.