Written Premium

DEFINITION of 'Written Premium'

An accounting term in the insurance business used to describe the total premiums on policies issued by an insurance company during a specific period of time regardless of what portions have been earned. Written premiums are the amount of premium charged for a policy that has already become effective.

BREAKING DOWN 'Written Premium'

Written premiums refer to the amount of premiums customers are required to pay for insurance policies written during the accounting period. This is different from premium earned, which is the amount of premiums that a company has earned by providing insurance against various risks during the year. Written premiums may be measured as a gross (before deduction of reinsurance costs) or net (after reinsurance costs) number.

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