Underwriting Expenses

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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The loss adjustment expenses have been folded into losses [column (3)], and all other expenses (underwriting expenses and premium taxes) are presented in column (2).
The expense ratio increased 0.8 points as compared with the prior year quarter due to higher underwriting expenses.
ISO and PCI noted that the combined ratio, which is a key measure of losses and other underwriting expenses per dollar of premium, climbed to 97.7% for the first three quarters of 2014, up from 95.8% in the first three quarters of 2013.
As a result of this consultation, the quarterly publication now contains an additional 25 general insurance statistics, including statistics based on the recently revised capital reporting framework and statistics at the class of business level, such as a split of net incurred claims , number of risks and components of total underwriting expenses .
Broadly, those are the ratios to premiums for losses and loss-adjusted expenses; underwriting expenses (including commissions and brokerage); and dividends to policyholders, which are comparably small, said Andrew Colannino, vice president in the Property/Casualty Division at A.M.
The combined ratio--a key measure of losses and other underwriting expenses per dollar of premium--deteriorated to 110.5 percent for first-half 2011 from 101.7 percent for first-half 2010, according to ISO and the Property Casualty Insurers Association of America (PCI).
In addition, the composition of other underwriting expenses continues to temper underwriting results.
That makes smaller inland marine risks (those with premiums below $10,000) much better value for everyone in the chain - from the ultimate insured (who will receive a more commensurate price) to the retail broker (who can place and bind the risk in minutes, for very low cost) to the MGUs and insurers (who can offer the cover at lower rates and still see a decrease in underwriting expenses).
Underwriting Expense Ratio: The ratio for the combination of acquisition costs and other underwriting expenses excluding share based compensation expense was in our target range at 26.3 % as compared to 25.9% for the three month period ended December 31, 2014.
Net earned premiums grew by 3.8% in first-half 2019, and underwriting expenses and policyholder dividends were stable.
Net earned premiums grew by 3.8% in first-half 2019, and underwriting expenses and policyholder dividends were stable; however, this was offset by a 5.6% increase in losses and loss adjustment expenses (LAE) incurred.
The increase can be attributed to the decreases in reserve, benefits payment, and other underwriting expenses, according to the IC.