Definition of Written Premium in Insurance

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When it comes to written premium, this is actually an accounting term that is very important to know. Get a definition of written premium in insurance with help from an expert at Combs & Company in this free video clip.

Part of the Video Series: Insurance Questions Answered
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Video Transcript

Hi, my name is Susan Combs, and today we're going to talk about what is written premium in terms of insurance. When it comes to written premium, this is actually an accounting term. So if you are a broker, a lot of times what you will look a with the carriers is how much written premium you have done with that carrier. So it's not the commission that you are getting, it's the actual dollar amount added together of all the policies that this insurance carrier has written added together. So they are collecting all this premium so that if there is a claim, they have the money that's been collecting interest to pay out this claim. So like I said, it's an accounting term that means just all the policies that they have written together added up and that's the amount of written premium.

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