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Written premiums

Total premiums billed to the policyholder at inception, regardless of when the coverage period falls.

Definition

Fiscal 2022: Lloyd's of London reports £46.7 billion in gross written premiums, the figure the market watches as its barometer. Written premiums (gross written premiums, GWP) are all premiums billed during the period, whatever the coverage dates. A premium is booked at inception, even if coverage runs into the next year. You get from written to earned premiums through the unearned premium reserve (UPR). Under US statutory accounting, the expense ratio is calculated on written premiums (trade basis combined ratio) and the loss ratio on earned premiums. European practice usually uses earned premiums for both. GWP measures portfolio size and market share.

Its 6 cross-references, woven across the glossary's 18 categories
Written premiums: Actuarial science glossary illustration, AlgoPolis
Example

Lloyd's of London publishes its annual GWP as a market barometer. In 2022 the figure was about £46.7 billion across all lines.

Read next
Actuarial scienceEarned premiumsPortion of written premiums corresponding to the coverage period already elapsed, the reference denominator for technical ratios.Read the entry →Actuarial scienceExpense ratioRatio of underwriting expenses to premiums, measuring the share of premium absorbed by operational and distribution costs.Read the entry →Actuarial scienceUnearned premium reserveThe share of premium already collected but relating to coverage after the closing date, topped up by an unexpired risk reserve when that share is not enough to cover expected claims.Read the entry →
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