What is "written premium" in the context of insurance?

Written premium refers to the total amount of premiums that an insurance company has scheduled to receive from its policyholders over the duration of their insurance contracts. This figure encompasses all premiums that have been documented and are expected to be collected, regardless of whether they have been paid yet. It acts as a vital metric for an insurer's operational capacity, helping to assess the income generated from policies issued.

In the context of insurance, understanding the written premium is essential for evaluating the company's anticipated revenue, managing cash flow, and making strategic financial decisions. For example, a higher written premium can indicate growth in the insurer's market share and the effectiveness of their sales strategies.

The other options relate to different financial aspects of insurance but do not define written premium accurately. The total amount of claims paid reflects the insurer's outflows rather than inflows. Profit from policies refers to earnings after expenses and claims, and dividends pertain to the distribution of profits back to policyholders, which is a separate financial activity.