2008 Ordinary life overhead expense study

The object of these annual Milliman studies is to estimate overhead expense for the ordinary life line of business. Using information available from statutory annual statements (insurance issued and in force) as well as unit expense factors developed for these studies, variable expense for policy issue and maintenance was imputed for each company. Overhead expense was defined as the excess of general insurance expense over the imputed variable expense. Commission and agency-related expenses were excluded from the studies, while marketing and developmental expenses incurred in the home office were included.

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