21.1 Premium is the lifeblood of the insurance and reinsurance industry. Its rating, the speed with which it is paid, and its investment value all contribute substantially to the success of an insurer or reinsurer. In this chapter we consider the important question of liability for payment of the premium, time for payment and the problem of non-payment. We also look at the difficulties encountered in estimating the amount of premiums to be written and the consequences of breaching a specific premium income limit.