Question

How is the Management Expense Ratio computed in non-life insurance companies?

a.

Management Expenses / Net Premium

b.

(Management Expenses + Net Premium) / Claims Paid Direct

c.

(Management Expenses - Net Premium) / Net Premium

d.

(Management Expenses - Net Premium) / (Commission Direct + Commission on Reinsurance Accepte

Posted under IC 89 Management Accounting

Answer: (a).Management Expenses / Net Premium Explanation:The Management Expense Ratio is computed as Management Expenses / Net Premium.

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Q. How is the Management Expense Ratio computed in non-life insurance companies?
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