[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Written Premium**
## Definition
==Written Premium== is the total premium amount for policies issued (written) during a specific period, regardless of when the coverage is provided.
## Characteristics
- Recorded when policy is written/bound
- Full policy premium counted
- Includes premium for future coverage
- Used for production metrics
## Relationship to Earned
```
Earned Premium = Written Premium - Increase in Unearned
For 12-month policies written uniformly:
Annual Earned ≈ Written Premium (steady state)
```
## Uses
- Production volume tracking
- Market share analysis
- Growth metrics
- Agent commission calculation
## Example
```
Q4 2024 Production:
Policies written: 1,000
Average premium: $1,200
Written Premium: $1,200,000
But earned in 2024:
Only portion of coverage provided in 2024
If written uniformly, ~$600,000 earned in Q4
```
## Related Concepts
- [[Earned Premium#Definition]]
- [[On-Level Premium#Definition]]
## References
- Werner & Modlin, Chapter 3