When light passes through a passive optical component, the optical power decreases.

When light passes through a passive optical component, the decrease in optical power is termed insertion loss. This is a fundamental concept in optical transmission where every component like connectors, splices, splitters, or filters adds some level of power attenuation. Managing insertion loss is crucial to maintain overall system performance, especially in long-haul or dense WDM systems where accumulated loss can degrade the signal. HCIP-Transmission emphasizes the importance of measuring and minimizing insertion loss to ensure system stability and reach requirements are met.