Meaning
Earned Premium is the part of an insurance premium an insurer has recognized as revenue for coverage provided over a specific time.Definition
It’s the premium for the elapsed policy term, reflecting income for the risk covered.How It’s Calculated
Calculated by multiplying the total premium by the expired policy duration, then dividing by the full policy term. Example: A ₹1200 yearly premium earns ₹100 after one month.Significance
Essential for insurers’ financial reports, it shows revenue earned for protection given, distinct from premiums for future coverage.Author
