Q.1. Cost-of-risk is the sum of insurance costs; unreimbursed losses; risk control and loss prevention expenses; and administrative costs. Discuss below administrative costs. Provide a practical example to explain administrative costs

1. Clerical cost in the handing of insurance
2. The cost of handling self-insured losses
3. The cost of reporting and investigating loss occurrences
4. The cos of an in-house risk management department