Definition

Expenses incurred during the process of placing or transacting insurance, beyond the actual premium, encompassing administrative overhead, brokerage fees, and time spent on manual processes.

Why it matters (in Poovi’s context)

Automation is identified as a key method for reducing these costs in the insurance placement process, leading to greater efficiency.

Key properties or components

  • Incurred during placement process
  • Can be reduced by automation
  • Includes administrative and time costs

Contradictions or debates

None.

Sources