Commisions are usually a separate expense paid to third-party agents, brokers, or intermediaries for their services in selling or renewing insurance contracts. These payments are typically contingent on the sale or renewal of a policy, and the amount of commission paid can vary depending on the specific agreement between the insurer and the intermediary, which makes it difficult to attribute directly to a contract
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does FCF include direct acquisition cost only? and indirect acquisition cost is excluded. Thank you
Commisions are usually a separate expense paid to third-party agents, brokers, or intermediaries for their services in selling or renewing insurance contracts. These payments are typically contingent on the sale or renewal of a policy, and the amount of commission paid can vary depending on the specific agreement between the insurer and the intermediary, which makes it difficult to attribute directly to a contract
Generally, indirect acquisition costs are expensed when incurred and are not part of the FCF
does FCF include DIRECT acquisition cost only then? Thanks again
yeap