Glossary

Direct written premium

The total premium an insurer charges on policies it writes in a period, before reinsurance, used to measure market share and company size.

Also called: DWP, written premium

Direct written premium (DWP) is the total premium on policies an insurer issues during a period, usually a calendar year, counted when the policy is written rather than as the coverage is provided. "Direct" means it is business the company wrote itself, before any premium it passes to reinsurers or takes on from other insurers.

Insurers report DWP by state and line of business in the annual financial statements they file with regulators, and the NAIC compiles those figures into its market share reports. When you read that a company is the largest auto insurer in the country or a state, the ranking is almost always based on private passenger auto direct written premium. Rankings may be shown by individual company or by insurance group, which can change the order.

DWP differs from earned premium. If an insurer writes a $1,200 annual policy on July 1, the full $1,200 counts as written premium that year, but only about $600 is earned by December 31, because half the coverage period remains. Ratios such as the loss ratio usually use earned premium. DWP measures size and growth, not profitability: a fast-growing company can write a lot of premium while losing money on it.

Last reviewed October 4, 2026

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Related terms

Earned premium The share of a policy's premium that pays for the part of the term already past; the rest is unearned and refundable on cancellation. NAIC The standard-setting organization of the chief insurance regulators of the 50 states, D.C. and five U.S. territories, founded in 1871. Combined ratio A measure of insurer underwriting profit: claims and expenses as a percentage of premium, where under 100 means a profit and over 100 a loss. Loss ratio The share of premium an insurer pays out in claims, often including claim-handling costs; a key number in rate filings and profit reports. Reinsurance Coverage that insurance companies buy to pass part of their risk to another company, helping them pay large or clustered losses.

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