https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3APremiums_writtenDefinition:Premiums written - Revision history2026-07-03T07:26:43ZRevision history for this page on the wikiMediaWiki 1.43.9https://www.insurerbrain.com/w/index.php?title=Definition:Premiums_written&diff=22701&oldid=prevPlumBot: Bot: Creating definition2026-03-31T17:21:42Z<p>Bot: Creating definition</p>
<p><b>New page</b></p><div>📝 '''Premiums written''' measures the total amount of [[Definition:Premium|premium]] an insurer has contractually committed to receive for policies issued or renewed during a specific period, regardless of whether the coverage has been provided or the cash has been collected. It is the broadest top-line metric in [[Definition:Non-life insurance|non-life insurance]] and serves as the industry's primary gauge of production volume and market share. The figure encompasses the full policy premium at the point of binding — before any adjustment for the passage of time or the recognition of [[Definition:Premiums earned|earned revenue]] — making it distinct from premiums earned and from premiums actually received in cash.<br />
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📋 Industry convention distinguishes among several variants: [[Definition:Gross written premium (GWP)|gross written premiums]] (GWP) represent the total before any [[Definition:Reinsurance|reinsurance]] deductions; [[Definition:Net written premium (NWP)|net written premiums]] (NWP) subtract [[Definition:Ceded premium|ceded premiums]] to reflect what the insurer retains for its own account. [[Definition:Direct written premium|Direct written premiums]] capture business sourced directly from policyholders, while assumed premiums represent [[Definition:Inward reinsurance|inward reinsurance]] business. These distinctions matter enormously for financial analysis: GWP signals an insurer's market reach and distribution power, while NWP reveals the risk it actually carries. Regulators use written premiums as input for multiple supervisory metrics — including the [[Definition:Net premium to surplus ratio|net premium to surplus ratio]] monitored by [[Definition:National Association of Insurance Commissioners (NAIC)|NAIC]]-guided regulators in the US and equivalent leverage tests in other jurisdictions — to assess whether a company's writings are proportionate to its [[Definition:Capital|capital]] base.<br />
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📈 Tracking premiums written over time reveals the pricing cycle, competitive dynamics, and strategic direction of individual carriers and entire markets. During hard market phases, written premiums rise as rates increase and capacity tightens; in soft markets, competitive pressures may drive volume growth even as profitability erodes. Analysts compare written premiums across geographies and [[Definition:Line of business|lines of business]] to evaluate growth quality — rapid expansion in unfamiliar segments can signal adverse selection or [[Definition:Underwriting|underwriting]] discipline concerns. For [[Definition:Insurtech|insurtech]] companies seeking to demonstrate scale, premiums written is often the headline metric presented to investors, though savvy stakeholders look beyond it to [[Definition:Loss ratio|loss ratios]], [[Definition:Combined ratio|combined ratios]], and retention rates to determine whether growth translates into sustainable value. Whether viewed through the lens of [[Definition:IFRS 17|IFRS 17]], [[Definition:US GAAP|US GAAP]], or local [[Definition:Statutory accounting|statutory accounting]] frameworks, premiums written remains the indispensable starting point for understanding an insurer's scale and trajectory.<br />
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'''Related concepts:'''<br />
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* [[Definition:Gross written premium (GWP)]]<br />
* [[Definition:Net written premium (NWP)]]<br />
* [[Definition:Premiums earned]]<br />
* [[Definition:Ceded premium]]<br />
* [[Definition:Combined ratio]]<br />
* [[Definition:Underwriting]]<br />
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