Premium 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 unexpired risks.
Insurance Encyclopedia
Gross written premium (GWP)
The total premium (direct and assumed) written by an insurer before deductions for reinsurance and ceding commissions. Includes additional and/or return premiums. Written does not imply collected, but the gross policy premium to be collected as of the issue date of the policy, regardless of the payment plan.
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This is the total premium written by an insurer in the reporting period, before any deductions are made for reinsurance.
Gross Yield
The interest or dividend on an investment without deduction of tax payable on it.
Grossing-up Factor
A factor used to adjust a base figure to an ultimate one. For example (01) The ratio between the ultimate cost and the accumulated payments at a prior development period, as used in statistical claims projection methods, such as the chain ladder method. (02) The scaling-up of claims experience to allow for the expectation of the occasional very large claim. This is used in experience rating of individual claims experience that has been stripped of any very large claims. It is also sometimes used in motor rating to make adequate allowance for large bodily injury liability claims, stripped out of a basic analysis.
Ground coverage (Aviation Insurance)
Insurance for risks to the airplane body while not flying. Perils are specified as either “not in flight” or “not in motion.” “Not in flight” coverage also covers the aircraft during taxi.
Ground heave
See: HEAVE.
Ground risks
Aviation insurance term describing the risk of damage to the aircraft while stationary on the ground.
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The risk of damage to an aircraft while stationary on the ground.
Ground Up Loss
The total amount of loss sustained by the ceding company before taking into account the credit(s) due from reinsurance recoverable(s).
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The entire amount of an insurance loss, including deductibles, before application of any retention or reinsurance. The original loss to the insured, after recognizing known salvage and subrogation.
Ground-up Loss
In Reinsurance, the term refers to the gross amount of loss occurring to the reinsured, beginning with the first rupee of los and after the application of deductions required by the reinsurance agreement (which can be several in number) (a) the reinsured’s retention in excess of loss covers, (b) other inuring reinsurance says, such as quota share, surplus share, per risk excess, facultative, or common account coverage, or (c) the uncollectibility of any reinsurance. For example, ground up losses subject to a per risk excess treaty protecting the reinsured’s net retention would equal the net loss beginning with the first rupee after reduction of the gross loss by recoveries from other treaties such as surplus covers and facultative placements, but before the application of the deductible in the per risk excess cover itself.
Grounding risk
Withdrawal of aircraft from service. The risk is insurable by an aircraft manufacturer under an aviation products liability policy to indemnify a manufacturer against his legal liability for loss of use pending investigation and repair of an alleged defect.