Glossary
Written Premium
The total premium on policies an agency has bound during a period, regardless of whether it has been collected or earned yet.
Written premium is the headline volume number for an agency: add up the premium on every policy bound in the period and that is what was written. It says nothing about whether the money arrived or whether the coverage period has elapsed — it measures production, not cash and not revenue.
The distinction matters at reconciliation time. A policy written on the last day of the month contributes its full premium to written premium but almost nothing to earned premium, and may not have generated a single dollar of collected cash. Comparing written premium against a carrier statement without accounting for that timing gap produces variances that look alarming and mean nothing.
See also
- Earned Premium — The portion of a policy's premium that corresponds to coverage already provided, recognised proportionally as the policy…
- Unearned Premium — The portion of a policy's premium covering the remainder of the term — not yet earned by the insurer and refundable if t…
- Premium Reconciliation — The process of matching the premiums collected by an insurance agency to the deposits and commission statements received…