Written Premiums

What Does Written Premiums Mean?

Written premiums refer to the premiums recorded in the books of an insurer or reinsurer when a policy is issued and paid for. These premiums can include both direct and assumed premiums.

Direct premiums written are premiums collected by the insurer’s subsidiaries for all policies issued directly by them.
Assumed premiums written are premiums received from an authorized state-mandated pool.

Insuranceopedia Explains Written Premiums

When an insurance company enters into a contract to provide coverage against potential losses, the anticipated premiums are referred to as gross premiums. Typically, insurers purchase reinsurance to protect themselves from losses exceeding a certain threshold.

After deducting the cost of reinsurance from the gross premiums, the remaining amount is called net written premiums.