Utilization of Time-Driven Activity-Based Costing for Cost Control in the Insurance Sector (Using the Example of the Al-Baraka Insurance Company; State of Palestine)

The methodology is based on a case study of Al Baraka Insurance Company (Palestine), a comparative analysis of the traditional costing approach and TDABC, and a calculation-b ased analytical procedure that includes the estimation of practical capacity, cost per time unit, and time parameters of insurance operations. The results show that the traditional system produces the same policy cost for all insurance types, whereas TDABC reveals differences in labour intensity and cost: motor car insurance requires a lower share of indirect costs, while general insurance and employee insurance require a higher share. The model also makes it possible to identify unused capacity of the resource group separately, thereby increasing the transparency of cost control. The practical significance of the study lies in the fact, that the proposed calculation logic can be used by insurance companies to refine tariff policy, analyse staff utilisation, and improve management accounting.

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