Direct Premiums Written

What Does Direct Premiums Written Mean?

Direct premiums written refers to the total amount of premiums an insurance company writes during a given year, without factoring in the amount ceded to reinsurance. This figure can include policies written by affiliated companies, but it does not include premiums earned from the company’s role as a reinsurer.

Insuranceopedia Explains Direct Premiums Written

Direct premiums written represent an insurance company’s growth over a specified period. While increased premiums contribute to higher revenue, new policies are the primary driver of growth. On a per-policy basis, the dollar amount that gets counted in this total comes from underwriting decisions like the ones described in how business insurance premiums are calculated. For consumers, the figure is one step removed from what they actually pay each month, which depends on factors covered in what affects the cost of a life insurance premium.