Underwriting Expenses Incurred

What Does Underwriting Expenses Incurred Mean?

Underwriting expenses incurred include all paid and unpaid costs associated with the underwriting process. This process involves a range of expenses across various areas, such as salaries, commissions, and meetings with potential insureds.

Insuranceopedia Explains Underwriting Expenses Incurred

Additional examples of underwriting expenses include advertising costs, actuarial reviews, inspections, and various meetings. An insurance company must invest in efforts to earn premiums while ensuring that its incoming business remains profitable. As long as an insurance company’s premium income exceeds its expenses, it can remain solvent.