Earned premium reflects premium attributed to insurance protection provided during a reporting period under the relevant method.
The distinction that matters
It differs from premium written or cash collected, particularly where policies span financial periods.
What to check
- Check recognition method and period.
- Review cancellations and adjustments.
- Compare consistent gross or net figures.
Example to discuss
An annual policy paid upfront still provides protection over time, so the cash receipt and earned premium need not coincide.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
Use the definition in the report being analysed. Changes in business mix, reinsurance, estimation and reporting methods can affect interpretation. These measures do not determine whether an individual claim is covered.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.