Gross Net Written Premium Income
Candlefocus EditorGNWPI is different from gross net earned premium income (GNEPI), which uses earned premiums (transaction type) rather than written premiums (contract basis). Written premiums typically take longer to realize, as some of them may cancel before the policy’s end date. On the other hand, earners premiums are premiums that are actually earned upon the completion of the policy period. GNEPI would then be a better measure for reinsurers when the amount of risk taken on by the reinsurer increases over time.
In summary, GNWPI is a measure of the total dollar amount of premiums written by an insurer in a certain time period and then available to be used to calculate the amount due to a reinsurer. This is distinct from GNEPI, as written premiums tend to take longer to realize and can be cancelled before the policy’s end date leading to a better measure of reinsurer’s due amount.