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What is the difference between gross written premium and net written premium?

April 26, 2017gross NET Premium written

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What is the difference between gross written premium and net written premium?

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Gross written premium represents the consideration charged to the insured. When the captive shares risk with a reinsurer, part of the gross premium is paid to the reinsurer. The remaining premium (i.e., gross less reinsurance premium) represents the net written premium.