Abstract : Insurance Operations Cost refers to the expenses associated with the day-to-day functioning of an insurance company. In the context of a commercial insurance company, these costs are broadly categorized into three main types. Firstly, Fixed costs are those that remain constant, regardless of the company's operational state or capacity. This includes expenses like building rent, furniture, and laptops. These costs are incurred irrespective of the business's operational activity and remain constant. Secondly, Variable costs fluctuate based on the level of production and how it is conducted. For instance, issuing a certain number of insurance policies might require different amounts of time and resources depending on the production speed. Variable costs include indirect overhead costs such as laptop supplies, computer supplies, credit card processing, electrical usage, office products, payroll services, telecom, uniforms, utilities, or waste disposal. Thirdly, Semi-variable costs are expenses necessary to maintain the business in proper condition, such as maintenance costs. These costs are partially fixed and partially variable, reflecting the dual nature of their impact on the company's budget [2,3].
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