YOU ASK:

What is the definition of Underwriting Income?

WE ANSWER:

Underwriting Income refers to the profit that the insurance company gets from premiums after all related expenses as well as claims have been paid.

When premium income is bigger than total losses and expenses, there is an underwriting income. Otherwise, the result is considered an underwriting loss. The premium being considered in underwriting income would be earned premium.

Underwriting income is one of the two streams by which the insurance company earns money from its policies. The other source of income would be investment income, which is what the company earns from its investment activities. The insurance company usually gets a bulk of its income from investment income and not from underwriting income.

Was this insurance question and its answer useful?
Not a bit
  • Currently 0/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Very useful
Have an Insurance Question? Ask For Insurance
Insurance glossary by alphabet:
  1. A |
  2. B |
  3. C |
  4. D |
  5. E |
  6. F |
  7. G |
  8. H |
  9. I |
  10. J |
  11. K |
  12. L |
  13. M |
  14. N |
  15. O |
  16. P |
  17. R |
  18. S |
  19. T |
  20. U |
  21. V |
  22. W |
Link this answer Email to a friend Print Bookmark or Share