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📋 '''Gross written premium''' (GWP) is the total [[Definition:Premium | premium]] an [[Definition:Insurance carrier | insurer]] or [[Definition:Reinsurer | reinsurer]] records on all policies and contracts issued or accepted during a given period, before any deductions for [[Definition:Reinsurance | reinsurance]] ceded, [[Definition:Commission | commissions]], or other adjustments. It represents the top line of an insurance entity's revenue and serves as the most widely cited measure of business volume across the global industry — appearing in [[Definition:Financial statement | financial statements]], [[Definition:Rating agency | rating agency]] assessments, regulatory filings, and market analyses from London to Tokyo. While conceptually straightforward, the precise recognition rules for GWP differ between [[Definition:US GAAP | US GAAP]], [[Definition:IFRS 17 | IFRS 17]], and various [[Definition:Statutory accounting | statutory accounting]] frameworks, which can affect comparability across jurisdictions.

⚙️ When an insurer binds coverage, the full premium for the policy period is recorded as GWP at inception (or, in some accounting regimes, as the premium becomes contractually due). A property insurer writing a one-year commercial policy with an annual premium of $500,000 books the entire amount as GWP at the point of binding. That figure then feeds into several derivative metrics: [[Definition:Net written premium | net written premium]] (after subtracting [[Definition:Ceded premium | reinsurance premiums ceded]]), [[Definition:Gross earned premium | gross earned premium]] (the portion allocated to the exposure period that has already elapsed), and ultimately the [[Definition:Loss ratio | loss ratio]] and [[Definition:Combined ratio | combined ratio]] that gauge underwriting performance. For reinsurers, GWP encompasses both [[Definition:Treaty reinsurance | treaty]] and [[Definition:Facultative reinsurance | facultative]] premiums assumed. Under IFRS 17, the traditional GWP metric is replaced by "insurance revenue" recognized over the coverage period, but most companies continue to disclose GWP as a supplementary volume measure because of its entrenched role in industry benchmarking.

📊 Tracking GWP is essential for multiple stakeholders. [[Definition:Underwriting | Underwriters]] and portfolio managers use it to monitor growth against plan, detect concentrations by geography or line, and ensure alignment with [[Definition:Risk appetite | risk appetite]] frameworks. Regulators rely on GWP data to assess [[Definition:Market share | market share]], [[Definition:Premium adequacy | premium adequacy]], and systemic exposure — the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]] in the United States, the [[Definition:Prudential Regulation Authority (PRA) | PRA]] in the United Kingdom, and supervisory authorities across Asia and Europe all collect GWP as a core statistical input. Rating agencies use GWP trends to evaluate franchise momentum, competitive positioning, and the sustainability of an insurer's business profile. However, GWP alone says nothing about profitability, [[Definition:Reserve adequacy | reserve adequacy]], or the quality of the underwriting behind the numbers — a rapidly growing GWP figure can be a warning sign if it reflects aggressive [[Definition:Pricing | pricing]] or loosened terms. Disciplined insurers therefore interpret GWP alongside [[Definition:Retention ratio | retention rates]], rate changes, and exposure growth to form a complete picture of the business they are writing.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Net written premium]]
* [[Definition:Gross earned premium]]
* [[Definition:Ceded premium]]
* [[Definition:Combined ratio]]
* [[Definition:Loss ratio]]
* [[Definition:IFRS 17]]
{{Div col end}}

Definition:Gross written premium - Revision history

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