Can you say: "Yesterday the insurance company effected compensation."
Does the word 'effect' go with compensation.
Thank you for any suggestions!
No. The insurance company has not been working on/bringing about a settlement of your claim with itself!
But - if I were acting as a mediator in a dispute between you and the insurance company, then I may be able to effect a settlement that is acceptable to both parties.
'effect' as a verb: to cause to happen, to actively work towards bringing about.
"Florence Nightingale effected many changes in nursing practice."