Gross written premium is a term that may refer to the total amount of premiums collected by an insurance company during a given period before any discounts or refunds are taken into account. It measures the total amount of business an insurance company has written in a particular period.
Gross Written Premium in More Detail
Gross written premium is the total amount of money an insurer collects from its customers in exchange for insurance policies. It is the sum of all premiums charged regardless of the risk the insurer takes. The gross written premium is calculated before any expenses and commissions are taken into account.
Gross written premium is an essential metric for insurance companies, as it indicates their financial health and the size of their customer base. It also measures the company’s ability to pay claims during a disaster.
Gross written premium is often used to compare the performance of different insurance companies. By looking at the gross written premium for each company, it is possible to get a good indication of their size and profitability.
In summary, gross written premium measures the total premiums collected by an insurance company during a particular period. It gauges the company’s financial health, size, and profitability. It is an essential metric for insurance companies and can be used to compare their performance.
