General insurance expenses

Document description

The overall cost in expense terms of running an insurance operation is the total of the amount of management expenses incurred and of the commission paid to intermediaries. The commission offered by an insurance company in respect of a particular type of business is normally expressed as a fixed percentage of the charged (written) premium. It is straightforward to analyse commission by type of business and to forecast commission for an assumed future portfolio of business. This monograph is mainly concerned with management expenses exclusive of commission.