Question

Is Gross Premiums and Gross Written Premium are the same?
How Written Premiums are reported at annual report of company? Under what name?

Answer 1

Gross Premiums: It is the total premium paid by a policy owner, it includes net premium plus the expenses paid and the cost of operation minus the interest expenes.

It is the premium paid by the insurance owner before the consideration of brokerage costs and the discounts.

Gross Written Premiums(GWP): It is the total premium written by the insurer before deductions for reinsurance & ceding commissions.

hence, both the terms are differ by definition and use.

Now if we talk about how companies report written premiums, written premiums are considered as principal source of company's revenues, thus it appears at the top of the Income Statement.

Under the name written premiums.