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Deferred acquisition cost (DAC)

Term · Insurance and risk management · MLC-T-INS-001104

An accounting asset representing the capitalized expenses incurred by an insurance company in obtaining new business. These costs, such as commissions, underwriting expenses, and policy issuance costs, are spread out and expensed over the expected life of the policies. DAC is amortized over the period that premiums are earned.

Table 1. Record
IdentifierMLC-T-INS-001104
FieldInsurance and risk management
AbbreviationDAC
Record as JSON 
{
  "id": "MLC-T-INS-001104",
  "term": "Deferred acquisition cost (DAC)",
  "field": "Insurance and risk management",
  "definition": "An accounting asset representing the capitalized expenses incurred by an insurance company in obtaining new business. These costs, such as commissions, underwriting expenses, and policy issuance costs, are spread out and expensed over the expected life of the policies. DAC is amortized over the period that premiums are earned.",
  "abbreviation": "DAC",
  "url": "https://mlchart.com/terminology/insurance/deferred-acquisition-cost-dac/"
}

Record 933 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.