What Is The Full Form Of GWP In Insurance?
GWP Full Form in Insurance is Gross Written Premium. This is basically the total amount of money an insurance company expects to get from premiums during a given period before they’ve even thought about paying out for expenses like reinsurance and commissions.
GWP Coverage Details:
Gross Written Premium scoops up every cent of premiums an insurance company plans to collect, whether directly or through assumptions, right from the policy’s kickoff date. And get this, it doesn’t even matter if the money has hit the bank yet. What’s interesting is that GWP isn’t bogged down by deductions for commissions doled out to brokers or the costs of reinsurance, which sets it apart from net written premiums.
Why Care About GWP in the Insurance Sector?
GWP kinda acts as a measuring stick for sizing up the heft and health of different insurance companies. Getting to know the GWP figures helps stakeholders get the scoop on an insurer’s market share and growth potential. Simply put, a soaring GWP suggests a company’s on a sales hot streak and has a customer pool that’s super, which works more like a magnet for investors and business partners!