Which of the following specifically contributes to the combined operating ratio?

The combined operating ratio (COR) is a key metric used in the insurance industry to assess an insurer's overall profitability. It specifically measures the ratio of the sum of claims costs, commissions, and operational expenses in relation to the earned premiums. By considering all three components—claims costs, commissions, and expenses—this metric provides a comprehensive view of an insurer's operational efficiency and profitability.

When the claims cost is included, it reflects the expenses incurred by the insurer for claims made by policyholders. Commissions represent the costs associated with selling and distributing insurance policies. Expenses encompass all other operational costs necessary for running the insurance business. The COR is calculated by adding these elements together and comparing the total to earned premiums. A lower COR indicates greater profitability, while a ratio above 100% signifies that the insurer is paying out more in claims and expenses than it is earning in premiums.

In summary, the answer reflects the totality of the costs that directly impact the insurer's financial health and performance, making it the correct choice regarding the components that contribute to the combined operating ratio.