Underwriting income is the profit generated by an insurer's underwriting activity over a period of time. Underwriting income is the difference between premiums collected on insurance policies by the insurer and expenses incurred and claims paid out. Huge claims and disproportionate expenses may result in an underwriting loss, rather than income, for the insurer. The level of underwriting income is an accurate measure of the efficiency of an insurer's underwriting activities.When an insurance company writes an insurance policy for a new client or renews a policy for an existing client, they receive an insurance premium as payment. This is their revenue. The costs associated with an insurance company are the ordinary business costs as well as money paid out to clients when they file an insurance claim for an accident or other such event. The difference between revenue and costs, like any business, is the income, in this case, the underwriting income.An insurer's underwriting income may fluctuate from quarter to quarter, with natural and other disasters such as earthquakes, hurricanes, and fires leading to huge underwriting losses.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Ver todos los episodios