Written Premium

Written premium is the total amount of insurance premiums that an insurance company has received for a specific period of time. It is calculated by multiplying the number of policies sold by the average premium per policy. Written premium is an important metric for insurance companies because it helps them to track their revenue and profitability.

There are two main types of written premium: gross written premium and net written premium. Gross written premium is the total amount of premiums that an insurance company has received before any deductions, such as commissions or taxes. Net written premium is the amount of premiums that an insurance company has received after all deductions have been made.

Written premium is a key indicator of the financial health of an insurance company. A high level of written premium indicates that the company is doing well and is able to attract new customers. A low level of written premium can indicate that the company is struggling and is losing customers.

Written premium is also used to calculate an insurance company's loss ratio. The loss ratio is a measure of the efficiency of an insurance company's operations. It is calculated by dividing the total amount of claims paid by the company by the total amount of premiums received. A high loss ratio indicates that the company is paying out more in claims than it is receiving in premiums. A low loss ratio indicates that the company is paying out less in claims than it is receiving in premiums.

Written premium is an important metric for insurance companies, investors, and regulators. It is a key indicator of the financial health of an insurance company and can be used to track the company's performance over time.