Written Premiums

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Written Premium Written premium is the amount of money that a person has to pay in order to be covered by an insurer. People pay a premium amount for getting themselves protected from any loss. It is an accounting term in the insurance industry used to describe the total amount that customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums are the principal source of an insurance or reinsurance company's revenues. Usually appear at the top of a company's income statement. Written premiums stand in contrast to earned premiums, which is what an insurance company actually books as earnings. Written premiums are the principal source of an insurance company's revenues and appear on the top line of the income statement. written premium is calculated by taking the number of sales that an insurance firm makes in exchange for the premium. For example, if a company gets 100 new customers which will pay 100 (x currency) each in the span of a year, the company's written premium will be (100*100) 10,000 (x currency). Premiums are the main form of income for an insurance business. They may be measured as a net or gross figure. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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