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📅 '''Underwriting year''' is a method of grouping [[Definition:Policy | policies]] by the calendar year in which they [[Definition:Inception | incepted]] — or, in [[Definition:Reinsurance | reinsurance]], by the year in which the [[Definition:Treaty | treaty]] or [[Definition:Facultative reinsurance | facultative]] contract attached — so that all [[Definition:Premium | premiums]], [[Definition:Incurred loss | losses]], and [[Definition:Expense | expenses]] arising from that cohort can be tracked together over time. Unlike a [[Definition:Calendar year | calendar-year]] view, which slices results by the accounting period in which transactions are booked, the underwriting-year approach ties every financial movement back to the original period of risk acceptance.

🔄 A single underwriting year remains open for development long after December 31 of the year in question, because [[Definition:Claim | claims]] — especially in long-tail [[Definition:Line of business | lines]] such as [[Definition:Liability insurance | liability]] or [[Definition:Professional indemnity insurance | professional indemnity]] — may not be reported or settled for years. In the [[Definition:Lloyd's of London | Lloyd's]] market, syndicates traditionally keep an underwriting year open for three years before closing it through [[Definition:Reinsurance to close (RITC) | reinsurance to close]], transferring any remaining liabilities to a successor year. Tracking results on an underwriting-year basis gives management and [[Definition:Capacity | capacity]] providers a clear view of how each vintage of business is maturing.

📐 This cohort-based perspective is indispensable for evaluating [[Definition:Underwriting discipline | underwriting discipline]] and [[Definition:Pricing | pricing]] adequacy. If a particular underwriting year's [[Definition:Loss ratio (L/R) | loss ratio]] deteriorates steadily as claims develop, it signals that the risks written during that period were under-priced or poorly selected — intelligence that may be obscured in blended [[Definition:Calendar year | calendar-year]] figures. [[Definition:Actuarial science | Actuaries]], [[Definition:Rating agency | rating agencies]], and [[Definition:Reinsurance | reinsurers]] all rely on underwriting-year triangulations to project [[Definition:Ultimate loss | ultimate losses]] and assess the true quality of an insurer's [[Definition:Book of business | book of business]].

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Accident year]]
* [[Definition:Calendar year]]
* [[Definition:Policy year]]
* [[Definition:Reinsurance to close (RITC)]]
* [[Definition:Loss development]]
* [[Definition:Loss triangle]]
{{Div col end}}

Definition:Underwriting year - Revision history

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