Expense Loading

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23 Oct 2018, 09:39

Definition: Expense loading is the amount included in the premium charged by an insurance company to cover its administrative and maintenance costs.

Description: In order to cover for their operating expenses, the insurance companies include this as a portion of the total premium payable. Expense load is an addition to the pure premium accommodates for overhead expenditure of the insurance provider.

Read for the day: Life insurance industry set to grow at 12-15%

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Mayank Goyal

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