What Does Underwriting Expenses Incurred Mean?
Underwriting expenses incurred are all the paid and unpaid expenses related to the underwriting process. The process of underwriting entails a variety of expenses in a number of different areas, including salaries, commissions, and meetings with potential insureds.
Insuranceopedia Explains Underwriting Expenses Incurred
Other examples of underwriting expenses incurred include advertising costs, actuarial reviews, inspections, various meetings, and so on. An insurance company must spend money in the effort to earn premiums while ensuring that their incoming business remains profitable. As long as an insurance company earns more from its premiums than its expenses, it can remain solvent.