Underwriting Expenses

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Underwriting Expenses

The expenses associated with running an insurance agency. Underwriting expenses include salaries and commissions for agents, travel, training sessions, rent on offices and so forth. Underwriting expenses do not include taxes.
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2 percentage-point increase in the first-quarter underwriting expense ratio, largely due to strategic investments to enhance underwriting expertise plus an increase in premium taxes and related fees that offset higher earned premiums and ongoing expense management efforts.
The underwriting expense ratio and net underwriting combined ratio at a class of business level have also been included in the quarterly publication.
Best's Global Insurance & Banking Database, includes earned premium; losses incurred; loss adjustment expense incurred; and underwriting expense incurred.
The deterioration in underwriting results was primarily driven by increases in incurred losses from weather-related events coupled with AMIC's historically elevated underwriting expense level and the cumulative impact of persistent soft market conditions on the company's business.
Also, the company s underwriting expense ratio is above the personal property composite average, primarily driven by higher commission rates.
non-catastrophe) losses also contributed to the improved combined ratio, while the underwriting expense ratio increased slightly to 28.
The ratings acknowledge WMIC s solid capitalization, established market presence in Wisconsin and favorable underwriting expense ratio.
Other underwriting expense in the fourth quarter 2011 was $5.
Thus, while the insurance company might lose money on these policies due to the greater-than-expected mortality, better persistency and initial up-front investment in agent commissions and underwriting expense, the life settlement investor may not make as much (or may actually lose money) as was expected when the investment vehicle was created.
The company attributes this to the modernization of technology infrastructure and business development, which has added several points to the underwriting expense ratio.
However, expense management has recently taken on greater importance for insurers as economic conditions and shrinking premium bases has fostered a steady increase in the underwriting expense ratio to 28% for full-year 2009, compared with a hard market low of 25% in 2003.
Partially offsetting these positive rating factors are TSP's geographic concentration of risk, competitive operating environment in which it operates and its above average underwriting expense ratio.