Accounting Glossary of Life Insurance

Operating expenses excluding insurance acquisition cash flows

These expenses refer to business-related costs that are not included in insurance acquisition cash flows, and are categorized into “costs related to maintenance of insurance contracts and overhead costs for providing insurance services” and “expenses not directly related to the fulfillment of insurance contracts.”


The former includes costs associated with back-office operations necessary for business execution, while the latter includes costs such as those incurred for product development.
 

Related terms