Net premiums/Expenses loading

Net premium is the portion of the insurance premium paid to an insurance company by a policyholder that is appropriated for payment of future insurance claims, excluding the portion appropriated for expenses of the insurance company (expense loading).

On the other hand, expenses loading is the portion of insurance premium for running life insurance business. It includes expenses necessary for the acquisition of new policy contracts, expenses necessary for the collection of insurance premium, and expenses necessary for the maintenance and administration of policy contracts throughout the insured period.