Gross written premium and net written premium describe different views of an insurer’s business before and after specified reinsurance adjustments.
The distinction that matters
Neither figure alone establishes profit, claim-paying capacity or the price of an individual policy.
What to check
- Read the reporting definitions.
- Review reinsurance and cancellations.
- Compare the same business and period.
Example to discuss
A large gap between gross and net premium prompts a review of reinsurance arrangements rather than an assumption of poor performance.
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.