Premium Accounting

The purpose of this study note is to explain the key accounting concepts and issues in the recording and evaluation of premium information, specifically with regard to financial reports. Issues to be addressed by this study note include: • Revenue recognition (written premium versus earned premium) • Written premium components • Unearned premium issues • Unearned premium and loss reserve interaction • Miscellaneous topics A glossary is included at the end of the study note for certain terms involved in premium accounting.