Unearned Premium Reserve – UPR

Premiums is the main source of income for an insurance company. Insurers differentiate between written premiums and earned premiums. The former is the premiums that are contracted and usually paid for. The latter refers to the part that is earned in term of the risk exposure. Usually the premium is collected in advance by the insurer. If a client for instance pays for one year of reinsurance by 1 December…

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