https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AGross_premium_written 2026-06-13T23:05:04Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Gross_premium_written&diff=9110&oldid=prev 2026-03-11T04:59:30Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>💰 &#039;&#039;&#039;Gross premium written&#039;&#039;&#039; refers to the total amount of [[Definition:Premium | premium]] an [[Definition:Insurance carrier | insurer]] records on all [[Definition:Insurance policy | policies]] it issues or renews during a specific accounting period, before any deductions for [[Definition:Reinsurance | reinsurance]] cessions or [[Definition:Return premium | return premiums]]. It represents the top line of an insurer&#039;s revenue and captures the full value of risk the company has agreed to underwrite, regardless of how much of that risk it ultimately retains on its own books. In [[Definition:Statutory accounting | statutory]] and [[Definition:Generally accepted accounting principles (GAAP) | GAAP]] financial reporting, gross premium written is one of the first figures analysts examine when assessing an insurer&#039;s scale and market presence.<br /> <br /> 📊 When an insurer binds a policy, the entire premium for that policy&#039;s term is booked as gross premium written at inception — even if the [[Definition:Policyholder | policyholder]] pays in installments. This figure feeds into several downstream calculations: subtracting premiums [[Definition:Cession | ceded]] to reinsurers produces [[Definition:Net premium written | net premium written]], while allocating the premium over the coverage period yields [[Definition:Earned premium | earned premium]]. Regulators, [[Definition:Rating agency | rating agencies]], and investors track gross premium written closely because sudden spikes may signal aggressive underwriting, while declines could suggest lost market share or deliberate portfolio pruning. For [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Coverholder | coverholders]] operating under [[Definition:Delegated underwriting authority (DUA) | delegated authority]], the gross premium written on their programs is a key metric that capacity providers monitor against the limits set in [[Definition:Binding authority agreement | binding authority agreements]].<br /> <br /> 🔍 Understanding gross premium written is essential for anyone evaluating an insurer&#039;s financial health or competitive positioning. Because it is reported before reinsurance and adjustments, it provides an unvarnished view of how much business the company is originating, making it a useful comparator across carriers of different sizes and [[Definition:Retention | retention]] strategies. It also underpins calculations such as the [[Definition:Loss ratio (L/R) | loss ratio]] denominator when measured on a gross basis and influences [[Definition:Solvency | solvency]] assessments, since the volume of premium written must be supported by adequate [[Definition:Capital adequacy | capital]]. In short, gross premium written is the starting point for nearly every meaningful financial analysis in the insurance industry.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Net premium written]]<br /> * [[Definition:Earned premium]]<br /> * [[Definition:Cession]]<br /> * [[Definition:Written premium]]<br /> * [[Definition:Unearned premium reserve]]<br /> * [[Definition:Gross premiums written]]<br /> {{Div col end}}</div>

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