Understanding Premium Growth Rate
How we calculate. Growth % = (current − prior) ÷ prior × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Premium Growth Rate case uses current premium 11200000 and prior premium 10000000. Enter the same figures below to reproduce the worked path.
What is Premium Growth Rate?
A top-line growth KPI. Negative values mean premium decline. State written vs earned and calendar vs accident year.
- Same premium basis both periods
- Same FX and consolidations
- Signed result shows direction
The Formula
Worked Example
Common Use Cases
- Board reporting: GWP/GEP growth
- Product lines: growth vs profitability
- Agency production: book growth
Pro Tips
- Normalize one-time books
- Separate rate vs exposure growth
- Watch M&A step-ups
Limitations: Premium Growth Rate results are educational insurance and agency planning aids—not underwriting, actuarial, claims, or financial advice. Confirm statutory definitions with your carrier, regulator, and finance teams.
FAQ
Written or earned?
Either—keep both periods on the same basis and label the chart.
What if prior premium is 0?
Growth % is undefined—enter a positive prior premium.
Authoritative References
For insurance ratio and reporting concepts, consult:
- NAIC — U.S. insurance regulatory resources
- Casualty Actuarial Society — actuarial education resources
- Insurance Information Institute — industry explainers