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Definition:Gross written premiums: Difference between revisions

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{{Infobox definition
📈 '''Gross written premiums''' (often abbreviated GWP) is the total amount of [[Definition:Premium | premium]] an insurer or [[Definition:Reinsurance | reinsurer]] records on all [[Definition:Policy | policies]] issued or renewed during a given period, before any deductions for [[Definition:Ceded reinsurance | reinsurance ceded]], [[Definition:Commission | commissions]], or other adjustments. As the top-line revenue metric of the insurance industry, GWP captures the full scale of risk an organization has committed to underwrite and is universally used — from the smallest [[Definition:Managing general agent (MGA) | MGA]] to the largest global composite insurer — to measure market share, growth trajectory, and competitive positioning.
| category = kpis; volume
| abbreviation = GWP
| aliases = gross premiums written; gross written premium
| id = gross_written_premium
| unit = currency
| related terms = Net written premiums; Insurance revenue; Gross written premiums & other revenues
| short definition = Total premiums written, gross of reinsurance.
| review status = authored
}}
 
📊 '''Gross written premiums''' is the total premium an insurer contracts for during a reporting period. The measure deducts nothing: premium ceded to reinsurers stays in, and so does premium not yet earned over the coverage term. Commonly abbreviated GWP, and also reported as gross premiums written, it is the industry's most widely used volume measure: the full price of all the risk the company agreed to take on in the period, regardless of how much it keeps or when the coverage runs.
⚙️ GWP is recorded at the point a [[Definition:Policy | policy]] is bound or a [[Definition:Reinsurance treaty | treaty]] incepts, regardless of when the premium is actually collected in cash. This means GWP includes premiums on policies where the coverage period extends well into the future, and the corresponding [[Definition:Unearned premium reserve | unearned premium reserve]] will be established to match the liability. Subtracting [[Definition:Ceded reinsurance | ceded premiums]] from GWP yields [[Definition:Net written premiums | net written premiums]], which reflects the premium the insurer retains for its own account. Further adjusting for the change in unearned premiums produces [[Definition:Net earned premiums | net earned premiums]] — the denominator used in calculating the [[Definition:Loss ratio | loss ratio]] and [[Definition:Combined ratio | combined ratio]]. Regulatory filings worldwide — whether submitted to the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]] in the United States, the [[Definition:Prudential Regulation Authority (PRA) | PRA]] in the United Kingdom, or [[Definition:Insurance regulator | supervisory authorities]] across Asia and Europe — prominently feature GWP as a primary measure of an insurer's business volume.
 
⚙️ A premium counts as written when the contract incepts or is booked, which makes GWP a point-of-sale measure rather than a measure of coverage delivered. Two standard deductions turn GWP into related metrics: subtracting outward reinsurance gives net written premiums, and spreading premium over the policy period gives earned measures. Under IFRS 17, premiums no longer appear on the face of the income statement; insurance revenue took that role. IFRS reporters therefore disclose GWP as a supplementary KPI, while US statutory reporting and many local frameworks still build directly on written premiums. GWP is expressed in currency and anchors segment and market-share disclosures worldwide.
🌍 Beyond regulatory reporting, GWP is the common currency for benchmarking across the global insurance landscape. [[Definition:Rating agency | Rating agencies]], [[Definition:Investor | investors]], and industry bodies such as [[Definition:Swiss Re Institute | Swiss Re Institute]] use GWP to rank carriers, track market concentration, and assess sector-level growth. However, GWP alone can be misleading without context: a company that writes large volumes but cedes most of the risk may have impressive GWP but modest [[Definition:Net written premiums | net retention]], while another with lower GWP may retain substantially more risk and generate higher underwriting margins. For [[Definition:Insurtech | insurtech]] companies and [[Definition:Program administrator | program administrators]] operating under [[Definition:Delegated underwriting authority (DUA) | delegated authority]], the GWP they place on behalf of [[Definition:Insurance carrier | capacity providers]] is a key performance metric — even though the balance sheet liability ultimately rests with the carrier. Understanding GWP in relation to net premiums, [[Definition:Earned premium | earned premiums]], and [[Definition:Capital | capital]] deployed gives a far richer picture of an insurance operation's true economic footprint.
 
🔍 Most readers check GWP growth first in an insurer's results, because it blends pricing and exposure into a single top-line signal. Rising GWP can mean rate increases, new business, or both, and disclosures often decompose it accordingly. Regulators and analysts also use GWP to size markets and rank carriers, since it is available on a broadly consistent basis across jurisdictions. The limitation matters just as much: writing premium says nothing about profitability, so read GWP alongside retention and underwriting-result measures, never in isolation.
'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Net written premiums]]
* [[Definition:Net earned premiums]]
* [[Definition:Ceded reinsurance]]
* [[Definition:Unearned premium reserve]]
* [[Definition:Combined ratio]]
* [[Definition:Loss ratio]]
{{Div col end}}
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