Definition: Premiums earned

Category: European System of Accounts (ESA)

Proportion of premiums written that have been earned during the accounting period. Premiums written cover the period contracted in the insurance policy. The difference between premiums written and premiums earned are amounts set aside, and included in the reserves for unearned premium. Such amounts are treated as assets of the policyholders. The concept of premium earned in insurance accounting is consistent with the accruals recording principle of national accounts. http://ec.europa.eu/eurostat/product?code=KS-02-13-269&mode=view European Union, Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union, Official Journal of the European Union No L 174, 26.06.2013, p. 1 - 727