Glossary of Reinsurance Terms

GAAP (Generally Accepted Accounting Principles)

A method of reporting the financial results of an insurer more in accordance with the going-concern basis used by other businesses. GAAP assigns income and disbursements to their proper period, as distinguished from the more conservative requirements of statutory accounting, by which insurers are regulated.

Gross Earned Premiums

Premiums received by or due to an insurer, without deduction of the cost of any reinsurance. but adjusted to take account of the differences between the unexpired risk reserves at the beginning and end respectively of the period concerned.

Gross Written Premiums

Premiums received by or due to an insurer without deduction of the cost of any reinsurance or any adjustment for the fact that some of the income has to be reserved for the unexpired element of the policy.