Earned Premium Vs Written Premium

[Sellem]

I'm looking to reward my two employees with a bonus if we increase our agency's book of business. I am a P&C agent writing primarily personal lines in business over 20 years. Should I base a bonus on an increase in written premiums or earned premiums? The period would run between now and Nov. 30th.

 

[xrac]

Depends upon how you intend to do it. If you are paying a bonus as a percentage of the commission will you advance commission or not? If it is a flat dollar bonus my feeling would be it should be based upon written premium plus some type of minimum retention period.