The difference between a written premium and a premium income

1. The written premium refers to the total premium of the policies sold during the statistical period, including the policies with and without the policy.

2. Premium income is the consideration charged by the insurance company to the policyholder for the performance of the obligations stipulated in the insurance contract.

Revenue. It is the most important capital inflow channel for insurance companies, and it is also the most important fund for insurers to fulfill their insurance obligations.

The official website shall prevail.

Written premium refers to the total premium of the policy sold during the statistical period, including the policy with and without policy, if the policy has been revised during this period, the difference between the signed premium and the premium income is the total premium of the signed policy without the policy premium. The written premium is a statistical indicator.

For a simple example: the customer signed an insurance policy with the insurance company, and according to the policy, the insurance unit charged the customer a premium of 5,000 yuan in 2015, which is the signed premium, and was counted in 2015.

Premium income is the consideration income collected by the insurance company from the policyholder for the performance of the obligations stipulated in the insurance contract. Since the cost of insurance is derived from estimates, it cannot be exactly equal to the actual cost, forming the difference between the cost of insurance pricing and the actual cost, and the difference between the two costs is the main benefit of the insurance company. Premium income is a financial indicator.

Let's also make a simple analogy: in the above example, this policy is assumed to be a one-year term, and the customer does not have an insured accident during the agreed period, deducting the pricing cost of 1,000 yuan, that is, the insurance company has an insurance income of 4,000 yuan; If the insured event occurs during the agreed period and the insurance company pays 500,000 yuan to the customer, the insurance income will be -496,000.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

There are also national taxes and fees.

1. The State Administration of Taxation and the Department of Tax Administration of Large Enterprises (Enterprise Convenience Letter No. 53).

1. The commercial insurance premiums paid by the enterprise for investors or employees shall not be deducted before the enterprise income tax, except for the personal safety insurance premiums paid by the enterprise for special types of employees in accordance with the relevant provisions of the state and other commercial insurance premiums that can be deducted according to the provisions of the competent financial and taxation departments (such as work-related injury insurance for employees engaged in high-risk work, and aviation accident insurance for employees on business trips).

2. The enterprise purchases personal accident insurance for employees, and employees should pay individual income tax.

Note: In fact, the cost of accident insurance is very low, and it can be taxed in 12 months, and the amount is negligible.

2. On the individual income tax of enterprise annuity and supplementary medical care:

According to the Reply of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Individual Income Tax (Cai Shui [2005] No. 94), the individual monthly annuity shall be calculated according to the specific standard used by the enterprise in the unified calculation and withdrawal of annuity by the total monthly salary of each person, and the individual income tax shall be withheld.

According to the notice of the Ministry of Finance and the State Administration of Taxation on the collection of individual income tax on housing provident fund, medical insurance and pension insurance (Cai Shui Zi [1997] No. 144), individual income tax shall be withheld. If the enterprise entrusts the insurance company to set up separate accounts and manage them centrally, and does not establish a personal account, the monthly supplementary medical insurance due to the individual shall be calculated according to the specific standard used by the enterprise when making unified withdrawals by multiplying the total monthly salary of each person, and the full amount shall be incorporated into the current month's salary and individual income tax shall be withheld.

Note: However, last year, a document was also issued to encourage enterprises to purchase commercial supplementary insurance - the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Enterprise Income Tax Policies Concerning Supplementary Pension Insurance Premiums and Supplementary Medical Insurance Premiums (Cai Shui [2009] No. 27).

Since January 1, 2008, in accordance with the relevant national policies and regulations, the supplementary endowment insurance premiums and supplementary medical insurance premiums paid by enterprises for all employees who are employed or employed in the enterprise shall be allowed to be deducted when calculating the taxable income if they do not exceed 5% of the total wages of employees. The excess amount will not be deducted.

You can ask the insurance company directly about this, and they know better.

The difference between the net premium and the written premium is as follows: The written premium refers to the premium charged to the holder of the policy according to the insurance contract. The gross premium consists of two parts: the net premium and the supplementary premium.

Net premium refers to the portion of the gross premium after deducting the cost of reinsurance and policy acquisition, which is called the net premium. Net premiums earned refer to the differential premium income collected during the policy period at a certain point in the policy life. The net premium is calculated based on the predetermined SI mortality rate and the predetermined interest rate, and the gross insurance premium is called the pure insurance premium.

It is divided into two parts: dangerous premium and savings premium, the dangerous premium is the insurance compensation and the fund of SI death payment**, and the savings premium is the maturity payment and surrender fund**. The additional premium consists of three parts: operating expenses, security surcharge and projected profit. Security Attachment refers to:

For short-term insurance business, it is a pre-deposit for major hazards, etc.; For long-term insurance business, it is a pre-stored provision for statistical deviations, etc.

Premium income is the money that an insurance company collects from an insured person to assume the liabilities required by the insurance contract. It is an important way for insurance companies to inflow funds, and at the same time, it is also the most critical fund for insurance companies to assume insurance liabilities. Insurance companies use the time difference between the entry and discharge of funds to generate profits and losses through working capital and its centralized and decentralized management of insurance risks, which is significantly different from other industries.

1. The increase in premium income has also increased the impact of commercial insurance debts. For short-term insurance policies, the insurance premiums received by the insurance company are inconsistent with the accounting period, resulting in a mismatch between the insurance premiums received in the current period and the risk time of commercial insurance;

2. The insurance premium is the premium income of the insurance company, and it is not a specific insurance cost, but an analysis of the future commercial insurance cost. Insurance companies predict future commercial insurance costs based on data on professional staff and past commercial insurance risks, which is the opposite of the method of identifying the market according to specific costs in the processing and manufacturing industries.