Expense allowance

{
  "id": "MLC-T-INS-001401",
  "term": "Expense allowance",
  "field": "Insurance and risk management",
  "definition": "A portion of the premium paid by policyholders that an insurer allocates to cover its operating costs, such as administrative charges, commissions, and taxes. This allowance is factored into the premium calculation and is distinct from the portion reserved for paying claims. It represents the insurer's recovery of its business acquisition and maintenance expenditures.",
  "url": "https://mlchart.com/terminology/insurance/expense-allowance/"
}