Insurance Expense Exhibit

Question 1

uses of IEE for different audiences (4)

Answer 1

• regulators: monitor financial health and rate adequacy
• management: identify lines that have performed more profitably to make decisions such as where to deploy capital
• investors: determine whether to invest in the company in the future
• actuaries: benchmark performance to other insurance companies

Question 2

IEE Part I allocation of Other Underwriting Expenses

Answer 2

allocates Other Underwriting Expenses from U&IE into three components:

• acquisition, field supervision, and collection expenses
• general expenses
• taxes, licenses, and fees