Definitions, examples and insights into global insurance, reinsurance and regulation.
FINANCIAL & ACCOUNTING TERMS
1/24 method is a method of calculating earned premium on the basis of a two-year (24-month) policy term.
LIFE & HEALTH INSURANCE
Accidental death and disablement is an insurance concept that refers to death and/or disablement caused by accidental means (rather than by natural causes).
PROPERTY INSURANCE
Accidental loss or damage is another term for all risks.
INSURANCE DISTRIBUTION
Accommodation basis is a basis on which an insurer may grant particular (usually undesirable) cover or certain terms and conditions of cover in order to ‘accommodate’ an existing relationship with a broker and/or insured.
RISK & EXPOSURE
Accumulation is a risk concentration concept in insurance that describes multiple insured risks exposed to the same loss event.
Read the full definition of Accumulation >FINANCIAL & ACCOUNTING TERMS
Acquisition costs are insurer expenses incurred to obtain business, including commissions, brokerage and taxes paid during policy acquisition.
Read the full definition of Acquisition costs >EMPLOYEE BENEFITS & PENSIONS
An additional voluntary contribution is a pension contribution paid above the amount required by the rules of an employee benefit plan.
FINANCIAL & ACCOUNTING TERMS
Admissible assets are assets accepted by UK regulators when assessing an insurance company’s net assets or solvency position.
INTERNATIONAL INSURANCE & REGULATION
Admitted refers to an insurer or intermediary that is authorised by the relevant local supervisory authority to write or place insurance business.
Read the full definition of Admitted >FINANCIAL & ACCOUNTING TERMS
Admitted assets are assets that US statutory accounting rules allow insurers to include when calculating surplus to policyholders.
COMMERCIAL INSURANCE
Advance loss of profits (ALOP) is a form of business interruption cover that relates to the expected profits of a new business or an extension to an existing business.
COMMERCIAL INSURANCE
Advance profits insurance is another term for advance loss of profits.
INSURANCE DISTRIBUTION
Affinity groups is an insurance term that refers to subgroups of personal lines consumers defined by a common factor such as age, occupation or shared interest.
INSURANCE DISTRIBUTION
Agency agreement is a written contract between an agent and a principal that declares the terms under which the agent operates on behalf of that principal.
INSURANCE DISTRIBUTION
An agent is an insurance intermediary that acts on behalf of an insurer or reinsurer to solicit, negotiate or effect insurance contracts.
Read the full definition of Agent >INSURANCE DISTRIBUTION
Agent, captive is another term for agent, tied.
INSURANCE DISTRIBUTION
Agent, exclusive is another term for agent, tied.
INSURANCE DISTRIBUTION
Agent, independent is an insurance agent that works on behalf of several insurers and is permitted to sell any of those insurers’ products.
MARINE & CARGO INSURANCE
Agent, shipping and forwarding is a freight forwarder.
INSURANCE DISTRIBUTION
Agent, tied is an insurance agent that works exclusively for one insurance company and has in-depth knowledge of that company’s products.
CLAIMS & POLICY MECHANICS
Aggregate excess insurance is a type of cover that becomes effective when losses exceed a certain amount during the period of insurance.
CLAIMS & POLICY MECHANICS
Aggregate limit of liability is another term for limit of liability, aggregate.
INSURANCE DISTRIBUTION
Aggregator is an online company or website that gathers and analyses information from different sources on the products and services offered by different companies and filters it through one website.
PROPERTY INSURANCE
All risks is a form of property insurance that covers loss or damage from any cause not specifically excluded by the policy.
Read the full definition of All risks >LEGAL & DISPUTE RESOLUTION
Alternative dispute resolution is a legal process in insurance that resolves disputes through methods such as arbitration, mediation or conciliation instead of litigation.
Read the full definition of Alternative dispute resolution (ADR) >RISK & EXPOSURE
Alternative risk transfer is a risk financing approach that uses structures such as captives, pools or finite risk insurance outside traditional insurance placement.
Read the full definition of Alternative risk transfer (ART) >LIFE & HEALTH INSURANCE
An annuity is a financial or pension product that provides regular payments for life or for an agreed period in exchange for premiums or a lump sum.
LEGAL & DISPUTE RESOLUTION
Arbitration is an alternative dispute resolution process in which an independent arbitrator decides the outcome of an insurance or legal dispute.
Read the full definition of Arbitration >LIABILITY INSURANCE
Asbestosis is a potentially fatal lung condition caused by the inhalation of asbestos dust or fibres.
REINSURANCE
Assumed reinsurance is reinsurance business accepted by an insurer or reinsurer from another insurance company.
Read the full definition of Assumed reinsurance >LIFE & HEALTH INSURANCE
Assurance is the term insurance relates to an event that may or may not happen e.g. death within a fixed period (term insurance.
MOTOR INSURANCE
Auto casco is another term for motor casco.
CLAIMS & POLICY MECHANICS
Automatic reinstatement is a policy provision through which the sum insured or indemnity limit is automatically reinstated following a loss.
MARINE & CARGO INSURANCE
Average in marine insurance is a partial loss concept that distinguishes between general average and particular average losses.
Read the full definition of Average (marine) >CLAIMS & POLICY MECHANICS
Average in non-marine insurance is a property insurance condition that reduces claim payments when the insured has under-declared the value at risk.
Read the full definition of Average (non-marine) >CLAIMS & POLICY MECHANICS
Average, condition of is a policy condition in property insurance that requires that the amount of a claims payment be reduced proportionately in the event of underinsurance.
MARINE & CARGO INSURANCE
Average, general is a partial loss in marine insurance that is due to actions taken and/or expenses incurred in protecting a ship, its crew and its cargo.
MARINE & CARGO INSURANCE
Average, particular is a partial loss in marine insurance that is caused by an insured peril.
LEGAL & DISPUTE RESOLUTION
Award is a form of monetary payment that may be compensatory in nature and may be mandated by a court ruling.
LEGAL & DISPUTE RESOLUTION
An arbitration award is the decision reached by an arbitrator in an insurance or legal dispute resolution process.
COMMERCIAL INSURANCE
Bad debts insurance is another term for credit insurance.
INSURANCE DISTRIBUTION
Bancassurance is the distribution of insurance products and provision of insurance services by banking institutions or by insurance companies wholly or partly owned by banks.
ISLAMIC INSURANCE
Bancatakaful is an insurance term that from the more commonly used ‘bancassurance’, bancatakful pertains more specifically to the selling of takaful products by banking institutions or by insurance companies wholly or partly owned by banks.
LIABILITY INSURANCE
Bankers’ Blanket Bond (BBB) is a product for financial institutions that provides protection against direct financial loss resulting from fraud or other criminal activities on the part of either the institution’s employees or third parties.
FINANCIAL & ACCOUNTING TERMS
Basis point (BPS) is an insurance term that refers to one hundredth of one percentage point (0.01 per cent).
EMPLOYEE BENEFITS & PENSIONS
Benefit in kind is an employee benefit that is not in the form of cash, such as a company car, private fuel, free or subsidised accommodation and holidays.
CLAIMS & POLICY MECHANICS
A benefit policy is an insurance policy that pays a fixed benefit amount when a covered claim occurs.
MARINE & CARGO INSURANCE
Bill of lading (B/L, BL, BoL) is a shipping document issued by a carrier to a cargo exporter.
INSURANCE DISTRIBUTION
Binding authority is a written agreement that allows an agent or broker to accept insurance or reinsurance business on behalf of a reinsurer.
Read the full definition of Binding authority >MOTOR INSURANCE
A blue card is an ASEAN motor insurance certificate proving that a driver holds compulsory motor vehicle insurance.
EMPLOYEE BENEFITS & PENSIONS
Blue collar employee is a term that describes an employee who performs manual labour.
MARINE & CARGO INSURANCE
Blue water hull is an insurance term for ocean-going hull.
PROPERTY INSURANCE
Boiler and machinery breakdown insurance is a type of cover to protect the insured against loss incurred as a result of boiler breakdown.
INVESTMENT & SAVINGS PRODUCTS
Bonds, Single Premium is a bond is an arrangement whereby in return for a lump sum (the minimum investment is usually £1.
MOTOR INSURANCE
Bonus malus is a motor insurance claims system in which discounts are given for claims- free driving (bonus) and surcharges are imposed when claims are made (malus).
FINANCIAL & ACCOUNTING TERMS
Book of business is the aggregate of policies that an insurer has in force at a given point in time.
EMPLOYEE BENEFITS & PENSIONS
Book Reserve Scheme is a pension scheme under which the employer is responsible for the payment of benefits which are financed by a provision in the employer’s accounts.
REINSURANCE
Bordereau (Bord) is a report containing details of premium and claims.
REINSURANCE
Bouquet treaty is a reinsurance treaty that combines contracts from different classes of business and usually contains both attractive and unattractive contracts.
INSURANCE DISTRIBUTION
A broker is an independent insurance intermediary that arranges insurance or reinsurance cover for clients by placing risks with suitable insurers.
Read the full definition of Broker >INSURANCE DISTRIBUTION
Broker, producing is another term for broker, retail.
INSURANCE DISTRIBUTION
A retail broker is an insurance broker that deals directly with insured clients and arranges suitable insurance cover for their risks.
Read the full definition of Broker, retail >INSURANCE DISTRIBUTION
Broker, sub is the term sub-broker is commonly understood to refer to a retail broker.
INSURANCE DISTRIBUTION
A wholesale broker is an insurance broker that helps retail brokers place larger, complex or specialist risks in suitable insurance markets.
Read the full definition of Broker, wholesale >INSURANCE DISTRIBUTION
Brokerage is remuneration paid to or received by an insurance broker for arranging or handling insurance business.
MOTOR INSURANCE
Brown card is an insurance term that refers to international motor insurance scheme established by the Economic Community Of West African States (ECOWAS) to provide evidence of cover for drivers’ motor third party liability when.
MARINE & CARGO INSURANCE
Brown water hull is an insurance term for vessels on lakes and rivers.
MARINE & CARGO INSURANCE
Builders’ risks insurance (marine) is insurance that covers vessels during construction.
COMMERCIAL INSURANCE
Builders’ risks insurance (non-marine) is a US insurance term for insurance cover purchased by contractors to cover damage to property under construction.
FINANCIAL & ACCOUNTING TERMS
Burning ratio is a ratio established by comparing actual losses with the amount of earned premiums.
NATURAL CATASTROPHE & WEATHER
Bushfire is another term for wildfire.
COMMERCIAL INSURANCE
Business interruption is a type of insurance that covers loss of gross profit and related costs following insured property damage.
Read the full definition of Business interruption (BI) >MARINE & CARGO INSURANCE
Cabotage is the transport of cargo or passengers between two locations in one jurisdiction by a vessel registered in another jurisdiction.
RISK & EXPOSURE
Capacity is the measure of an insurer’s ability to write new business or the monetary amount an insurer can accept on a particular risk.
RISK & EXPOSURE
A captive is an insurance company established by a parent organisation to insure some or all of that organisation’s risks.
Read the full definition of Captive >INSURANCE DISTRIBUTION
Captive agent is another term for agent, tied.
RISK & EXPOSURE
Captive domicile is a country or state that encourages the formation of captive insurance companies.
EMPLOYEE BENEFITS & PENSIONS
Career average earnings is an insurance term that refers to used by plans that are provided on a defined benefit basis whereby the benefits are based on the employee’s pensionable salary over the entire period.
MARINE & CARGO INSURANCE
Cargo is an insurance concept that refers to goods or property transported commercially by air, rail, road or water.
MARINE & CARGO INSURANCE
Cargo clauses are policy clauses used in marine and transport insurance to cover goods or property while in transit.
MARINE & CARGO INSURANCE
Cargo insurance is a type of marine or transport insurance that covers goods or property while they are in transit.
Read the full definition of Cargo insurance >MOTOR INSURANCE
Carte brune is another term for brown card.
MOTOR INSURANCE
Casco is another term for motor casco.
INVESTMENT & SAVINGS PRODUCTS
Cash Fund is an insurance term that refers to unit-linked life offices may launch a cash (or money) fund.
MARINE & CARGO INSURANCE
Casualty in marine insurance is a loss event, most commonly associated with marine hull business.
LIABILITY INSURANCE
Casualty (non-marine) is an accident that causes loss.
LIABILITY INSURANCE
Casualty insurance is a category of non-life insurance that primarily covers liability risks such as employers’ liability, environmental liability and product liability.
Read the full definition of Casualty insurance >NATURAL CATASTROPHE & WEATHER
A catastrophe is a severe loss event in insurance, often linked to natural disasters such as hurricanes, earthquakes or floods.
Read the full definition of Catastrophe >NATURAL CATASTROPHE & WEATHER
Cresta is an insurance industry body that standardises natural hazard exposure reporting for accumulation control and catastrophe modelling.
NATURAL CATASTROPHE & WEATHER
CatNet (R) is an “online natural hazard information and mapping system”, developed and maintained by Swiss reinsurer Swiss Re.
REINSURANCE
Cedant is an insurer that cedes business to one or multiple reinsurers.
REINSURANCE
Cede is an insurance transaction in which an insurer transfers insurance business to one or multiple reinsurers.
REINSURANCE
Cession is an insurance term that refers to insurance business that insurers have transferred (ceded) to reinsurers.
LIFE & HEALTH INSURANCE
Child’s Deferred Assurance is a life assurance policy under which, until the child reaches the so-called “vesting age” (18 or 21), the policy is owned and the premium paid by the parent.
INSURANCE DISTRIBUTION
Churning is the practice (by brokers or agents) of encouraging clients to surrender or cancel an existing policy in favour of setting up a new policy, through which the broker/agent will earn sizeable commission.
CLAIMS & POLICY MECHANICS
Claim is a demand by the insured that the insurer pay the indemnity or benefit to which the insured is entitled under the terms of the policy.
CLAIMS & POLICY MECHANICS
Claims-made is a liability policy basis that covers claims first notified during the policy period, regardless of when the loss occurred.
Read the full definition of Claims-made >LEGAL & DISPUTE RESOLUTION
A class action is a legal process that combines multiple similar lawsuits seeking compensation for the same loss or type of loss.
INSURANCE MARKET CLASSIFICATION
Class of business is an insurance classification that groups policies by category, such as motor, property, liability or marine.
Read the full definition of Class of business >EMPLOYEE BENEFITS & PENSIONS
Closed plan is a plan that does not accept new members.
LIFE & HEALTH INSURANCE
Cluster Policies is an insurance term that refers to cluster policies have their origin in the introduction of unit-linked life assurance.
CLAIMS & POLICY MECHANICS
Coinsurance is an insurance arrangement where two or more insurers share a risk or where the insured retains a percentage of each loss.
CLAIMS & POLICY MECHANICS
Coinsurance (US) is a type of insurance that in the US, coinsurance refers to the condition of average.
EMPLOYEE BENEFITS & PENSIONS
Collective agreement is an agreement between the employer and employee representatives (such as a trade union) in respect of the terms and conditions of employment.
CLAIMS & POLICY MECHANICS
Combined single limits are liability policy limits that apply one maximum amount to bodily injury and property damage claims together.
COMMERCIAL INSURANCE
Commercial lines are insurance products designed to protect businesses against risks such as property damage, liability, construction, motor and business interruption.
Read the full definition of Commercial lines >INSURANCE DISTRIBUTION
Commission is remuneration paid by an insurer or reinsurer to an intermediary for selling, placing or handling insurance business.
Read the full definition of Commission >EMPLOYEE BENEFITS & PENSIONS
Commutation is the act of giving up part or all of a pension in exchange for an immediate lump sum.
LIABILITY INSURANCE
Comparative negligence is another term for contributory negligence.
PROPERTY INSURANCE
Composite insurer is an insurance company that transacts both life and non-life (property and casualty) business.
LIFE & HEALTH INSURANCE
Compound Reversionary Bonus is a bonus added to with-profit (participating) life assurance policies such as whole life or endowment.
MOTOR INSURANCE
Comprehensive is an insurance term that refers to signifies a policy that includes several different types of cover.
INTERNATIONAL INSURANCE & REGULATION
Compulsory insurance is insurance that must be purchased to comply with legal, professional or regulatory requirements in a specific jurisdiction.
Read the full definition of Compulsory insurance >POLICY WORDING & COVERAGE
Condition is a stipulation imposed by the insurer as part of the insurance contract.
LEGAL & DISPUTE RESOLUTION
Conditional fee system is a system whereby a claimant’s solicitors and counsel are remunerated only (and at a higher rate) if the legal case is settled or adjudicated in the claimant’s favour.
COMMERCIAL INSURANCE
Consequential loss is insurance that covers loss of money, loss of profits and other costs resulting indirectly, often unforeseeably, from an insured loss event or breach of contract.
COMMERCIAL INSURANCE
Construction all risks (CAR) is another term for contractors all risks.
CLAIMS & POLICY MECHANICS
Continental scale is a means of calculating the level of benefit payable under a personal accident policy.
LEGAL & DISPUTE RESOLUTION
Contingent fee system is a system whereby a lawyer for a claimant is remunerated only if the legal case is settled or adjudicated in the claimant’s favour.
EMPLOYEE BENEFITS & PENSIONS
Continuous service is a period of unbroken service rendered by an employee (may include periods of absence for which salary is paid or service with a different employer following the transfer of a business).
EMPLOYEE BENEFITS & PENSIONS
Contract out is an insurance term that refers to commonly used to refer to the option to join an employer sponsored plan in lieu of a state plan.
COMMERCIAL INSURANCE
Contractors all risks is construction insurance that covers damage to contract works and related third party liabilities.
Read the full definition of Contractors all risks >ISLAMIC INSURANCE
A contribution is the Islamic insurance equivalent of a premium, paid into a takaful arrangement based on mutual assistance.
CLAIMS & POLICY MECHANICS
The principle of contribution is an insurance principle that shares a loss between multiple indemnity policies covering the same risk and peril.
Read the full definition of Contribution, principle of >LIABILITY INSURANCE
Contributory negligence is an insurance term that refers to doctrine whereby a plaintiff is found by a court to have contributed to some degree to the loss for which he or she is seeking compensation.
EMPLOYEE BENEFITS & PENSIONS
Contributory plan is a plan that requires an employee contribution.
LIFE & HEALTH INSURANCE
Convertible Term Life Insurance is a term insurance policy (i.e. the sum insured is payable on death within the policy term.
MARINE & CARGO INSURANCE
Cost and freight (CFR) is a standard term of sale for goods in transit.
MARINE & CARGO INSURANCE
Cost, insurance and freight (CIF) is a standard term of sale for goods in transit.
COMMERCIAL INSURANCE
Credit insurance is commercial insurance that protects against financial loss caused by customer insolvency or payment default.
Read the full definition of Credit insurance >LIFE & HEALTH INSURANCE
Credit Life Insurance is a form of decreasing term insurance to cover the outstanding debt under hire purchase and credit sale agreements.
LIFE & HEALTH INSURANCE
Creditor insurance is a policy covering the inability to repay a loan, a credit card balance or a mortgage.
NATURAL CATASTROPHE & WEATHER
Cresta is another term for Catastrophe Risk Evaluating and Standardising Target Accumulations.
LIFE & HEALTH INSURANCE
Critical Illness (or Dread Disease) is an insurance term that refers to if the insured is struck by one of a number of specified diseases or illnesses (e.g. heart disease, stroke, cancer.
INTERNATIONAL INSURANCE & REGULATION
Cross-border business is insurance or reinsurance transacted across national borders, often involving risks, insurers or policyholders in multiple countries.
Read the full definition of Cross-border business >INTERNATIONAL INSURANCE & REGULATION
Cross-frontier business is another term for cross-border business.
NATURAL CATASTROPHE & WEATHER
Cyclone is a tropical storm made up of a system of winds rotating inwards to a low- pressure area.
MARINE & CARGO INSURANCE
Deadweight tonnage is a shipping measure that describes the total weight a vessel can transport, including cargo, stores and fuel.
EMPLOYEE BENEFITS & PENSIONS
Death in retirement benefits are employee benefits paid where death occurs after the employee has retired.
EMPLOYEE BENEFITS & PENSIONS
Death in service benefits are employee benefits paid where death occurs whilst the employee is in the service of an employer.
PROPERTY INSURANCE
Decennial insurance is property cover that protects owners against damage or collapse caused by faulty design, construction or materials for a ten-year period.
Read the full definition of Decennial insurance >LIFE & HEALTH INSURANCE
Decreasing Term Insurance is a term insurance policy under which the sum payable on death decreases each year in accordance with a fixed scale.
CLAIMS & POLICY MECHANICS
A deductible is a policy feature that requires the insured to bear part of a loss before the insurer pays the remaining claim.
Read the full definition of Deductible >CLAIMS & POLICY MECHANICS
Deductible, disappearing is another term for franchise.
CLAIMS & POLICY MECHANICS
Deductible, time is a deductible that operates on the basis of time rather than a monetary amount or percentage of a policy limit.
FINANCIAL & ACCOUNTING TERMS
Deferred acquisition costs (DACs) is an insurance term that refers to acquisition costs (i.e. any.
LIFE & HEALTH INSURANCE
Deferred annuity is an annuity providing for the commencement of regular payments at an agreed future date or age.
EMPLOYEE BENEFITS & PENSIONS
Deferred benefits are vested employee benefits accrued before leaving an employer and typically paid at retirement.
EMPLOYEE BENEFITS & PENSIONS
Deferred compensation is a benefit earned by an employee at one time for which the employee becomes eligible at another time (typically after fulfilling vesting requirements), such as a pension plan.
EMPLOYEE BENEFITS & PENSIONS
Defined benefit is an employee benefits structure where benefits are determined by the benefit calculation formula.
EMPLOYEE BENEFITS & PENSIONS
Defined contribution is an employee benefits structure where benefits are determined by the value of the total accumulated fund.
EMPLOYEE BENEFITS & PENSIONS
Dependant is a person, normally a family member, who is reliant on the employee for financial support.
EMPLOYEE BENEFITS & PENSIONS
Dependants’ Income Benefit is a form of group life insurance that is an alternative for, or in addition to, a lump-sum payment.
GLOBAL PROGRAMMES & CROSS-BORDER COVER
Difference in conditions is an international insurance policy structure that fills coverage gaps left by local policies in a multinational insurance programme.
Read the full definition of Difference in conditions (DIC) >GLOBAL PROGRAMMES & CROSS-BORDER COVER
Difference in limits is an international insurance policy structure that provides excess limits above local policies in a multinational insurance programme.
Read the full definition of Difference in limits (DIL) >REINSURANCE
Direct insurance company is an insurance term that denotes an insurer, as opposed to a reinsurer.
FINANCIAL & ACCOUNTING TERMS
Direct insurance premiums is an insurance concept that refers to gross written premium including commissions and charges and before reinsurance cessions.
INSURANCE DISTRIBUTION
Direct marketing is an insurance term that refers to direct marketing encompasses all those marketing methods that insurers use to sell business without the use of an intermediary.
INSURANCE DISTRIBUTION
Direct response advertising is an insurance term that refers to a form of marketing that is designed to encourage prospective customers to respond directly to the advert that they have seen.
INSURANCE DISTRIBUTION
Direct writer is another term for direct insurance company.
LIABILITY INSURANCE
Directors’ and officers’ liability is insurance that protects company directors and officers against claims alleging negligence, breach of duty or wrongful acts.
Read the full definition of Directors’ and officers’ liability (D&O) >LIFE & HEALTH INSURANCE
Double Endowment is an endowment assurance under which the amount payable on maturity is twice the amount payable on death within the policy term.
CLAIMS & POLICY MECHANICS
Double indemnity is an insurance plan provision whereby benefits are doubled in case of a particular contingency, such as in the event of death caused by accident.
CLAIMS & POLICY MECHANICS
Dual insurance is a term used to describe situations in which there are two or more policies in force covering the same risk.
LIABILITY INSURANCE
Duty of care is a legal obligation to avoid actions or omissions that could injure others or damage their property.
Read the full definition of Duty of care >UNDERWRITING & DISCLOSURE
Duty of disclosure is an insurance obligation requiring parties seeking cover to disclose material facts that may affect underwriting or policy terms.
Read the full definition of Duty of disclosure >EMPLOYEE BENEFITS & PENSIONS
Early retirement age is an age at which the employee is permitted to retire (normally earlier than the normal retirement age although may be with reduced qualification criteria); benefits would typically be reduced.
NATURAL CATASTROPHE & WEATHER
Earthquake is a sudden violent shaking of the ground that results from the seismic waves created when the earth’s crust convulses.
BANKING & FINANCIAL SERVICES
E-banking is another term for internet banking.
LIFE & HEALTH INSURANCE
Educational Endowment Assurance is an endowment assurance on the life of the parent with the benefits payable in instalments over the schooling period of the child.
NATURAL CATASTROPHE & WEATHER
EF scale is another term for Enhanced Fujita scale.
PROPERTY INSURANCE
Electronic data processing insurance (EDP) is insurance cover against damage to or loss of electronic processing equipment, software and data.
LIFE & HEALTH INSURANCE
Embedded Value is the sum of a life assurance operation’s adjusted net asset value, plus the value of policies in force, less the cost of maintaining its solvency margin.
EMPLOYEE BENEFITS & PENSIONS
Employee benefit plan is the umbrella under which a range of employee benefits (such as retirement pensions.
EMPLOYEE BENEFITS & PENSIONS
Employee contributions are employee benefit plan contributions made by the employee (may or may not be required as a prerequisite for participation).
LIABILITY INSURANCE
Employee dishonesty insurance is another term for fidelity insurance.
LIABILITY INSURANCE
Employers’ liability is insurance that protects employers against claims from employees for work-related bodily injury or occupational disease.
Read the full definition of Employers’ liability (EL) >LIABILITY INSURANCE
Employment practices indemnity (EPI) is another term for employment practices liability.
LIABILITY INSURANCE
Employment practices liability (EPL) is insurance cover that protects an employer (the insured) against claims from its employees or prospective employees in relation to violations in the employment process and employment practices.
LIFE & HEALTH INSURANCE
Endowment Assurance is a policy for a fixed period under which the sum assured is payable at the end of the period (the maturity date) or upon the earlier death of the life assured.
NATURAL CATASTROPHE & WEATHER
The Enhanced Fujita scale classifies tornado intensity using wind and damage indicators to assess likely property damage.
LIABILITY INSURANCE
Environmental impairment liability is insurance that covers legal liability and clean-up costs arising from pollution-related injury or property damage.
Read the full definition of Environmental impairment liability (EIL) >PROPERTY INSURANCE
Equipment breakdown insurance is commercial cover that protects against loss or damage caused by mechanical, electrical or other equipment failures.
Read the full definition of Equipment breakdown insurance >LIFE & HEALTH INSURANCE
Equity Indexed Life Assurance is a policy that guarantees a small annual return on the cash value through investments in fixed-income instruments and, potentially, an additional annual return through equity index derivatives.
LIABILITY INSURANCE
Errors and omissions insurance is professional liability cover that protects professionals against claims arising from mistakes, negligence or inadequate work.
Read the full definition of Errors and omissions insurance (E&O) >INTERNATIONAL INSURANCE & REGULATION
Establishment business is an insurance term that denotes business that companies acquire in other territories as a result of having established local agency, branch or subsidiary operations or associated companies in those territories.
INTERNATIONAL INSURANCE & REGULATION
Euro area is an insurance term that denotes those European Union (EU) member states that have replaced their national currency with the euro (EUR) since its introduction in 1999.
INTERNATIONAL INSURANCE & REGULATION
Euroland is another term for euro area.
INTERNATIONAL INSURANCE & REGULATION
The European Economic Area is a regional market comprising EU member states plus Iceland, Liechtenstein and Norway.
INTERNATIONAL INSURANCE & REGULATION
European Free Trade Association (EFTA) is an insurance term that refers to founded in 1960 by the Stockholm Convention.
INTERNATIONAL INSURANCE & REGULATION
Eurozone is another term for euro area.
LIFE & HEALTH INSURANCE
Evidence of Health is the medical evidence, such as a proposal form from the assured.
CLAIMS & POLICY MECHANICS
Ex gratia is an insurance term that refers to with regard to payment, ex gratia signifies that payment has been made out of goodwill or moral obligation rather than any technical contractual or legal requirement.
PROPERTY INSURANCE
Excepted perils is another term for excluded perils.
POLICY WORDING & COVERAGE
An exception is a policy wording term usually used interchangeably with exclusion to describe something not covered by insurance.
CLAIMS & POLICY MECHANICS
An excess is the part of an insured loss that the policyholder must pay before the insurer contributes to the claim.
Read the full definition of Excess >POLICY WORDING & COVERAGE
Excluded losses is another term for excluded perils.
PROPERTY INSURANCE
Excluded perils is an insurance term that refers to those perils that are declared in an insurance policy as specifically not covered by that policy.
POLICY WORDING & COVERAGE
An exclusion is a policy provision that removes cover for specified hazards, property, people or circumstances.
INSURANCE DISTRIBUTION
Exclusive agent is another term for agent, tied.
LEGAL & DISPUTE RESOLUTION
Exemplary damages is another term for punitive damages.
FINANCIAL & ACCOUNTING TERMS
Expense ratio is an insurance term that refers to ratio of acquisition and administration expenses incurred to premium earned in respect of a particular class of business.
RISK & EXPOSURE
Exposure is the degree to which an insured risk or portfolio may be affected by a loss event.
Read the full definition of Exposure >CLAIMS & POLICY MECHANICS
Extended discovery period is another term for extended reporting period.
CLAIMS & POLICY MECHANICS
An extended reporting period is a claims-made policy provision that allows claims to be reported for a set time after policy expiry.
NATURAL CATASTROPHE & WEATHER
F scale is another term for Fujita scale.
EMPLOYEE BENEFITS & PENSIONS
Family allowance is an insurance term that refers to benefits provided under social security systems that provide financial support for families with one or more children.
LIFE & HEALTH INSURANCE
Family income benefits are life insurance benefits that pay an annual sum after death during the remaining policy term.
ISLAMIC INSURANCE
Family takaful is another term for takaful, family.
INSURANCE DISTRIBUTION
Fee is an insurance term that refers to fees are fixed charges made by a professional individual, company or organisation in return for the provision of professional advice or services.
LIABILITY INSURANCE
Fidelity insurance is commercial insurance that protects organisations against financial loss caused by employee dishonesty or fraud.
Read the full definition of Fidelity insurance >INTERNATIONAL INSURANCE & REGULATION
File and use is a system in which insurers file new policy wordings and/or key amendments to existing policy wordings with the appropriate regulator for approval.
EMPLOYEE BENEFITS & PENSIONS
Final pensionable salary is an employee’s salary upon which benefits are determined.
EMPLOYEE BENEFITS & PENSIONS
A final salary scheme is a defined benefit pension scheme where retirement benefits are based on salary and service.
LIABILITY INSURANCE
The first party in insurance is typically the insurer that provides cover under the policy.
MARINE & CARGO INSURANCE
Flag of convenience (FOC) is a ship’s flag indicates the country or territory in which that ship is registered and consequently the territory or country that is responsible for the ship’s safety standards.
MARINE & CARGO INSURANCE
Flag of vessel is another term for flag of convenience.
PROPERTY INSURANCE
Flexa is an insurance peril group that covers fire, lightning, explosion and aircraft-related damage.
PROPERTY INSURANCE
Flexa insurance is a property insurance covering Flexa perils.
EMPLOYEE BENEFITS & PENSIONS
Flexible employee benefit arrangement is an arrangement that provides the employee with a choice of benefits from a predetermined list.
LIFE & HEALTH INSURANCE
Flexible Endowment is an endowment policy which provides guaranteed surrender values after a defined number of years e.g. ten, to allow the whole or part of the policy to be encashe.
NATURAL CATASTROPHE & WEATHER
Flood is the natural phenomenon of a large volume of water overflowing onto dry land.
PROPERTY INSURANCE
Flood insurance is property insurance that covers loss or damage caused by flooding.
Read the full definition of Flood insurance >NATURAL CATASTROPHE & WEATHER
Forest fire is another term for wildfire.
CLAIMS & POLICY MECHANICS
A franchise is a policy feature similar to a deductible, where the insured bears losses below a specified threshold.
LIFE & HEALTH INSURANCE
Free cover is the maximum group insurance amount an insurer will provide without requiring individual evidence of health.
INTERNATIONAL INSURANCE & REGULATION
Freedom of establishment is an EU insurance concept that allows authorised insurers to conduct business in other EEA states through local operations.
Read the full definition of Freedom of establishment >INTERNATIONAL INSURANCE & REGULATION
Freedom of services (FOS) is another term for freedom to provide services.
INTERNATIONAL INSURANCE & REGULATION
Freedom to provide services is an EU insurance concept that allows authorised insurers to write cross-border business in other EEA states without establishing local operations.
Read the full definition of Freedom to provide services (FOS) >MARINE & CARGO INSURANCE
Freight is an insurance term that refers to may refer to goods transported in bulk by air, rail, road or water (and in this sense is synonymous with ‘cargo’).
MARINE & CARGO INSURANCE
Freight forwarder is a person or party that arranges overseas shipments of goods.
MARINE & CARGO INSURANCE
Freight forwarders’ liability is insurance that covers a freight forwarder’s legal liability for loss or damage to goods in transit.
Read the full definition of Freight forwarders’ liability >MARINE & CARGO INSURANCE
Freight insurance is a form of cover designed to cover the insurable interest of a cargo owner in the goods that the cargo owner owns.
INTERNATIONAL INSURANCE & REGULATION
Frontier business is another term for cross-border business.
GLOBAL PROGRAMMES & CROSS-BORDER COVER
Fronting is an international insurance arrangement where a locally admitted insurer issues a policy while transferring much of the risk to another insurer or reinsurer.
Read the full definition of Fronting >NATURAL CATASTROPHE & WEATHER
The Fujita scale is a tornado intensity scale that classifies windstorm damage and preceded the Enhanced Fujita scale.
NATURAL CATASTROPHE & WEATHER
Fujita scale values is an insurance term that refers to fujita scale values are the values assigned to tornado events under the Fujita scale.
EMPLOYEE BENEFITS & PENSIONS
Full orphan is the term for a child (or adult) where both parents are deceased.
EMPLOYEE BENEFITS & PENSIONS
A fully insured scheme is a pension arrangement where trustees use insurance policies to guarantee member benefits under the scheme rules.
MARINE & CARGO INSURANCE
General average is another term for average, general.
LEGAL & DISPUTE RESOLUTION
Gentlemen’s agreement is an arrangement that is based on trust rather than binding under law.
NATURAL CATASTROPHE & WEATHER
Geological hazards is an insurance term that to group together natural hazards that occur due to geological causes, such as tectonic plate shifts.
MOTOR INSURANCE
Green card is a document that provides evidence of motor insurance cover for drivers driving outside their country of domicile within and around Europe.
LIFE & HEALTH INSURANCE
Group insurance is insurance arranged for a group of people under a single policy, often provided through an employer or association.
Read the full definition of Group Insurance >LIFE & HEALTH INSURANCE
Group Life Assurance is a life insurance policy covering a group of people as distinct from individual lives.
LEGAL & DISPUTE RESOLUTION
Group litigation is another term for class action.
FINANCIAL & ACCOUNTING TERMS
Group Premium Rating (or Manual Group Premium Rating) is an insurance term that refers to similar units of exposure are grouped together in order that the risk premium to be applied to the group.
LIFE & HEALTH INSURANCE
Group private medical insurance is a private medical insurance plan that is offered on a group basis to all or a selection of employees, and is arranged by the employer.
LIFE & HEALTH INSURANCE
Guaranteed annuity is an annuity that prescribes certain guarantees, such as a guaranteed level of income (for example, a flat rate or an inflation adjusted benefit), a guaranteed payment period (for example.
INVESTMENT & SAVINGS PRODUCTS
Guaranteed Bonds is an insurance term that refers to life policies, normally paid by a single premium and for a fixed term, which guarantee certain benefits.
INVESTMENT & SAVINGS PRODUCTS
Home Income Plans is an employee benefits concept that schemes to assist elderly homeowners to raise loans on their property for the purpose of purchasing immediate annuities in order to increase their income.
LIFE & HEALTH INSURANCE
Hospitalization Insurance is a health policy that pays a fixed (usually daily) sum whilst the insured is admitted to hospital.
LIFE & HEALTH INSURANCE
House Purchase Scheme is an insurance term that refers to life assurance may be used in a variety of ways in connection with house purchase, for example as an endowment mortgage.
EMPLOYEE BENEFITS & PENSIONS
Hybrid is an employee benefits structure where benefits are determined using a combination of a defined benefit basis and defined contribution basis.
LIFE & HEALTH INSURANCE
Immediate Annuity is an annuity that usually commences payments to the annuitant at the end of the first interval.
LIFE & HEALTH INSURANCE
Income benefit is a recurring payment made under a life or family income benefit policy after a qualifying death or insured event.
LIFE & HEALTH INSURANCE
Income drawdown is an insurance term that refers to one method by which income is payable from a pension plan.
LIFE & HEALTH INSURANCE
Income protection insurance is an insurance plan that provides a prescribed level of salary replacement (typically inclusive of state and compulsory benefits) on the occurrence of an insured event.
EMPLOYEE BENEFITS & PENSIONS
Income test is the test applied to the employee’s prescribed income in order to determine whether the employee qualifies for benefits (may reduce the amount of benefits payable).
EMPLOYEE BENEFITS & PENSIONS
Increases to pensions in payment is an increase in the amount of a pension payment that occurs after the pension payments have commenced.
LIFE & HEALTH INSURANCE
Increasing Term (or Temporary) Insurance is a term (temporary) insurance particularly suitable for individuals uncertain as to their future life insurance requirements.
CLAIMS & POLICY MECHANICS
An indemnity policy is insurance that pays claims according to the principle of indemnity, restoring the insured’s financial position after loss.
CLAIMS & POLICY MECHANICS
The principle of indemnity is an insurance principle that restores the insured to their financial position before a covered loss.
Read the full definition of Indemnity, principle of >INSURANCE DISTRIBUTION
Independent agent is another term for agent, independent.
INSURANCE DISTRIBUTION
Indirect marketing is an insurance term that refers to indirect marketing is a method of marketing that involves insurance intermediaries.
LIFE & HEALTH INSURANCE
Industrial Life Assurance is the business of effecting life assurance, the premiums in respect of which are received by means of collectors, at intervals usually of less than two months.
CLAIMS & POLICY MECHANICS
Insurable interest is the legal or financial relationship that gives a person or organisation the right to insure a risk.
Read the full definition of Insurable Interest >POLICY WORDING & COVERAGE
Insurance rider is a type of insurance that additional cover for a specified risk provided under a stand-alone insurance plan.
EMPLOYEE BENEFITS & PENSIONS
Insured pension plan is a plan that is funded through contracts with a life insurance company.
PROPERTY INSURANCE
Insured perils is another term for named perils.
BANKING & FINANCIAL SERVICES
Internet banking is a banking service that allows customers to conduct banking transactions through the internet, or ‘online’, through their bank’s website.
INVESTMENT & SAVINGS PRODUCTS
Investment Bond is a unit-linked single premium bond.
ISLAMIC INSURANCE
Islamic insurance is another term for takaful.
LIFE & HEALTH INSURANCE
Joint life insurance is life insurance covering two or more lives, usually paying on the first death or the last death.
MOTOR INSURANCE
Kasko is another term for motor casco.
LIFE & HEALTH INSURANCE
Keyman Insurance is a life or accident or health insurance effected by a business on a person whose death or disablement would adversely affect the profitability of the business.
INTERNATIONAL INSURANCE & REGULATION
CIMA is a regional insurance organisation for francophone African states that coordinates integrated insurance regulation and market supervision.
LIFE & HEALTH INSURANCE
Last Survivor Assurance is a life assurance on two or more lives under which the sum assured is payable on the last death.
EMPLOYEE BENEFITS & PENSIONS
Late retirement age is an age at which the employee is permitted to retire, up to which benefits are increased due to retirement after the normal retirement age.
LIABILITY INSURANCE
Liability insurance is cover that protects an insured against legal responsibility for injury, damage or financial loss caused to third parties.
Read the full definition of Liability insurance >LIFE & HEALTH INSURANCE
Life annuity is an annuity that is payable for life.
LIFE & HEALTH INSURANCE
Life Assurance/Insurance is a policy under which an insurer agrees to pay a claim contingent upon the death or survival of human life, in consideration of payment of a single or regular premiums.
LIFE & HEALTH INSURANCE
Life of Another Policy is a life policy taken out by one person on the life of another in whom he or she has an insurable interest.
CLAIMS & POLICY MECHANICS
Limit of indemnity is another term for limit of liability.
CLAIMS & POLICY MECHANICS
A limit of liability is the maximum amount an insurer will pay for a covered claim or series of claims under a policy.
Read the full definition of Limit of liability >CLAIMS & POLICY MECHANICS
Limit of liability, aggregate is the aggregate limit of liability, also known as the aggregate limit of indemnity or aggregate limit.
INSURANCE MARKET CLASSIFICATION
Line of business is another term for class of business.
INVESTMENT & SAVINGS PRODUCTS
Linked-Life Assurance (or Life-Linked) is an insurance term that refers to investment schemes offered by life insurers in which premiums paid by the policyholders as investors are used partly to purchase life insurance.
LIFE & HEALTH INSURANCE
Long-term care insurance is cover that helps pay for personal or nursing care following an insured illness, disability or care need.
EMPLOYEE BENEFITS & PENSIONS
Long-term disability is an assessed disability, disease or illness that usually lasts for at least two years.
EMPLOYEE BENEFITS & PENSIONS
Long-term disability insurance is an insurance plan that provides a prescribed level of salary replacement on the occurrence of an insured event, such as disablement and sickness.
EMPLOYEE BENEFITS & PENSIONS
Long-Term Disability Insurance (LTD) is a type of insurance that long-term business usually written in the life department.
CLAIMS & POLICY MECHANICS
A loss adjuster is a claims professional who investigates losses and advises insurers on policy liability and claim settlement.
Read the full definition of Loss adjuster >CLAIMS & POLICY MECHANICS
Loss assessor is a claims expert who is appointed to assess, prepare and negotiate a claim and settlement with an insurer on the insured’s behalf.
CLAIMS & POLICY MECHANICS
Losses-occurring is a liability policy basis that covers losses occurring during the policy period, regardless of when the claim is made.
Read the full definition of Losses-occurring >LIFE & HEALTH INSURANCE
Low Cost Endowment is an endowment assurance, usually established to repay a house purchase loan, under which the initial sum assured is less than the loan to be repaid.
LIFE & HEALTH INSURANCE
Low start endowment assurance is an endowment policy with lower initial premiums that increase in later years.
INVESTMENT & SAVINGS PRODUCTS
Managed Fund is a unit-linked fund in which transactions in the underlying assets are made upon the decision of the fund manager.
FINANCIAL & ACCOUNTING TERMS
Manual or Group Premium Rating is an insurance term that refers to similar units of exposure are grouped together in order that the risk premium to be applied to the group.
FINANCIAL & ACCOUNTING TERMS
Margin of solvency for long-term business is the regulatory capital margin an insurer must hold for life or long-term insurance obligations.
EMPLOYEE BENEFITS & PENSIONS
Matching contribution is an employer contribution and/or government contribution, which is required due to an employee contribution; the matching contribution may equal the employee contribution.
UNDERWRITING & DISCLOSURE
Material circumstance is another term for material fact.
UNDERWRITING & DISCLOSURE
A material fact is information that would influence an insurer’s decision to offer cover, set terms or calculate premium.
Read the full definition of Material fact >EMPLOYEE BENEFITS & PENSIONS
Maternity leave is the period of leave provided to a pregnant employee and/or new mother covering the time of confinement and a certain period of time after the birth.
FINANCIAL & ACCOUNTING TERMS
Mathematical Reserves is an insurance term that refers to provision made by an insurer to cover liabilities (excluding liabilities which have already fallen due) arising under, or in connection with, contracts for long-term business.
LIFE & HEALTH INSURANCE
Maturity is the end of the term of an endowment assurance.
BANKING & FINANCIAL SERVICES
M-banking is another term for mobile banking.
EMPLOYEE BENEFITS & PENSIONS
Means test is the test applied to the employee’s prescribed income and assets in order to determine whether the employee qualifies for benefits (may reduce the amount of benefits payable).
LIFE & HEALTH INSURANCE
Medical Aid Insurance is a type of insurance that also known as private medical insurance.
NATURAL CATASTROPHE & WEATHER
Medvedev-Sponheuer-Karnik scale (MSK) is a 12-step scale used to measure the intensity of earthquake events on the basis of three factors: effects perceived by people; damage caused to buildings; geological changes.
NATURAL CATASTROPHE & WEATHER
Medvedev-Sponheuer-Karnik scale (MSK) values is an insurance term that refers to medvedev-Sponheuer-Karnik scale values are the values assigned to earthquake events under the Medvedev-Sponheuer-Karnik scale, which measures seismic intensity.
BANKING & FINANCIAL SERVICES
Microcredit is a form of microfinance banking in which lending institutions, including financial institutions and non-governmental organisations.
BANKING & FINANCIAL SERVICES
Microfinance is an insurance term that refers to microfinance is finance on a small scale.
COMMERCIAL INSURANCE
Microinsurance is insurance designed to provide affordable protection for low-income people or communities against specific risks.
Read the full definition of Microinsurance >BANKING & FINANCIAL SERVICES
Microsavings is a microfinance product that gives low-income individuals access to basic savings accounts.
ISLAMIC INSURANCE
Microtakaful is an insurance term that refers to microtakaful is takaful on a small scale, as microinsurance is insurance on a small scale.
BANKING & FINANCIAL SERVICES
Mobile banking is a banking service that allows customers to conduct banking transactions through the internet, or ‘online’, using a mobile device such as a mobile phone.
NATURAL CATASTROPHE & WEATHER
Modified Mercalli scale (MM) is the Modified Mercalli (MM) scale, also called the Modified Mercalli Intensity (MMI) scale, measures seismic intensity (as opposed to magnitude).
NATURAL CATASTROPHE & WEATHER
Modified Mercalli scale (MM) values is an insurance term that refers to modified Mercalli scale values are the values assigned to earthquake events under the Modified Mercalli scale, which measures seismic intensity.
EMPLOYEE BENEFITS & PENSIONS
Money Purchase (or Defined Contribution) Scheme is a pension scheme under which an individual member’s benefits are determined by contributions paid into the scheme in respect of that member.
LIFE & HEALTH INSURANCE
Morbidity Table is a table constructed from past knowledge of disabilities occurring at each age, to assist an actuary to construct premiums for permanenthealth insurance/long-term disability (PHI/LTD) or private medical insurance (PMI).
LIFE & HEALTH INSURANCE
Mortality Table is an instrument by which the probabilities of life and probabilities of death can be measured.
LIFE & HEALTH INSURANCE
Mortgage Protection is the name often applied to a decreasing term assurance used to cover the amount outstanding at any time during the period of an ordinary repayment mortgage.
MOTOR INSURANCE
Motor casco is an insurance term that refers to motor casco is a form of voluntary motor own damage insurance that covers damage to the vehicle itself resulting from such causes as traffic accidents.
ISLAMIC INSURANCE
Muduraba is an insurance term that refers to mudaraba is a form of joint venture in takaful or Islamic insurance between the contribution-paying members (policyholders).
PROPERTY INSURANCE
Named perils is property insurance that covers only the specific causes of loss listed in the policy.
Read the full definition of Named perils >FINANCIAL & ACCOUNTING TERMS
Natural Premium Method is an outmoded method of charging life assurance premiums in the UK, except under group life and group permanenthealth insurance schemes (where it is called single premium costing).
FINANCIAL & ACCOUNTING TERMS
New business strain is an insurance finance concept where writing new long-term business creates initial capital pressure due to acquisition costs and pricing assumptions.
EMPLOYEE BENEFITS & PENSIONS
Non-Contributory Pension Scheme is a scheme to which only the employer makes any contributions.
LIFE & HEALTH INSURANCE
Non-Evidence Limit is another term for Free Cover.
LIFE & HEALTH INSURANCE
Non-Forfeiture Clause is a clause in a life policy under which the policy remains in force for a limited period after the expiry of the (usually 30) days of grace for premium payment.
LIFE & HEALTH INSURANCE
Non-Medical Assurance is the same as ordinary life assurance except that, normally, no medical examination is required.
LIFE & HEALTH INSURANCE
Non-Profit Policy is an insurance policy concept that also known as a without profits or non-participating policy.
EMPLOYEE BENEFITS & PENSIONS
Normal retirement age is an age at which the employee is permitted to retire without a reduction in benefits due to early retirement.
EMPLOYEE BENEFITS & PENSIONS
Notional defined contribution is an employee benefits structure where benefits are determined on a defined contribution basis but are financed on a pay as you go basis.
EMPLOYEE BENEFITS & PENSIONS
Occupational pension plan is an employee benefits concept that any pension plan that an employer establishes and/or contributes to on behalf of the employee.
RISK & EXPOSURE
Occurrence is an insurance term that refers to occurrence is a term used to describe an event that gives rise to an insured loss.
BANKING & FINANCIAL SERVICES
Online banking is another term for internet banking.
LIFE & HEALTH INSURANCE
Open ended endowment policies are flexible endowment policies with adjustable terms or features.
LIFE & HEALTH INSURANCE
Open Market Option is the option to use the proceeds of a pension scheme to buy an annuity at the current market rate from the insurer concerned, or from any other insurer.
PROPERTY INSURANCE
Open perils is another term for all risks.
EMPLOYEE BENEFITS & PENSIONS
Paid sickness leave is a benefit that is paid by the employer to the employee when the employee is absent due to sickness or disability.
LIFE & HEALTH INSURANCE
Paid-up Policy is a policy, sometimes called a “free policy”, granted by a life insurer for a reduced amount based on premiums already paid with no further premiums payable.
LIFE & HEALTH INSURANCE
Paid-up Value is the value of a paid up policy is determined by actuarial calculation.
EMPLOYEE BENEFITS & PENSIONS
Parental leave is the period of leave provided to the parents of a child following birth or adoption.
LIFE & HEALTH INSURANCE
Participating Policy is an alternative term for a with profits policy.
MARINE & CARGO INSURANCE
Particular average is another term for average, particular.
CLAIMS & POLICY MECHANICS
Partners and Insurable Interest is a business partner has insurable interest in the life of a co-partner to the extent of the capital invested by the co-partner in the business.
LIFE & HEALTH INSURANCE
Partnerships Insurance is the use of life insurance to protect business partners, upon the death of one of them.
EMPLOYEE BENEFITS & PENSIONS
Paternity leave is the period of leave provided to a father following the birth of a child.
EMPLOYEE BENEFITS & PENSIONS
Pay-as-you-go (PAYG) is a method whereby pension scheme payments are financed as they fall due rather than by previous financial provision to build up a fund.
LIFE & HEALTH INSURANCE
Payment period is the period of time over which a benefit is paid.
EMPLOYEE BENEFITS & PENSIONS
Pension is a series of periodic payments that form an income stream and are payable monthly or at other specified intervals.
EMPLOYEE BENEFITS & PENSIONS
Pension Fund is the assets of a pension scheme from which the pensions will be paid.
LIFE & HEALTH INSURANCE
Pension Mortgage is a pension arrangement under which a proportion of the benefits can be used to repay the mortgage debt.
EMPLOYEE BENEFITS & PENSIONS
Pension plan is a vehicle through which benefits accrue in order to provide a pension or lump sum to employees at a future date.
EMPLOYEE BENEFITS & PENSIONS
Pensionable salary is the part of an employee’s salary on which pension contributions (and some other employee benefits) are based.
EMPLOYEE BENEFITS & PENSIONS
Pensioner is a person in receipt of a pension.
LIFE & HEALTH INSURANCE
Permanent Health Insurance (PHI) is a type of insurance that long-term business written in the life department.
PERSONAL LINES INSURANCE
Personal lines are insurance products designed to protect individuals and households rather than commercial organisations.
Read the full definition of Personal lines >CLAIMS & POLICY MECHANICS
Policy Fee is an insurance policy concept that when fixing the premium under life assurance policies, most companies incorporate a fixed annual charge on each policy known as the policy fee.
CLAIMS & POLICY MECHANICS
Premium rate is the price charged for a unit of insurance exposure, used to calculate the premium payable.
Read the full definition of Premium rate >INSURANCE DISTRIBUTION
Principal is the party in an agency agreement that authorises the agent to act on its behalf in entering into and concluding a contract with a third party.
LIFE & HEALTH INSURANCE
Private Medical Insurance (PMI) is an insurance or benefits arrangement that provides benefits for most types of medical expenses usually up to a high maximum benefit.
LIABILITY INSURANCE
Product liability insurance is cover that protects businesses against claims for injury or damage caused by products they manufacture, sell or supply.
Read the full definition of Product liability insurance (PL) >LIABILITY INSURANCE
Product recall insurance is commercial cover that protects against costs arising from withdrawing defective or unsafe products from the market.
Read the full definition of Product recall insurance >LIABILITY INSURANCE
Professional indemnity insurance (PI) is another term for professional liability insurance.
LIABILITY INSURANCE
Professional liability insurance is cover that protects professionals against claims arising from negligence, errors or omissions in their services.
Read the full definition of Professional liability insurance (PL) >EMPLOYEE BENEFITS & PENSIONS
Profit sharing is an insurance term that refers to where a company shares a part of the profits (on a prescribed basis) with some or all employees.
LIFE & HEALTH INSURANCE
Programmed withdrawal is an insurance term that refers to withdrawals made on a regular basis from a pension plan.
EMPLOYEE BENEFITS & PENSIONS
Provident fund is a savings vehicle from which the value of the total accumulated fund is paid as a lump sum at maturity.
CLAIMS & POLICY MECHANICS
Public loss assessor is another term for loss assessor.
LEGAL & DISPUTE RESOLUTION
Punitive damages is an insurance term that refers to damages awarded by a court in a liability case that are intended to punish the defendant rather than compensate the other party to the case.
LIFE & HEALTH INSURANCE
Purchased Life Annuity is an annuity purchased from an authorised insurer by an individual out of his or her own capital.
LIFE & HEALTH INSURANCE
Pure Endowment is a life assurance policy which pays the sum assured if the life assured survives the policy term.
ISLAMIC INSURANCE
Qard hassan is an insurance term that refers to qard hassan is the provision of an interest-free loan from the takaful entity founders/shareholders to the members (policyholders) of a takaful or Islamic insurance fund.
EMPLOYEE BENEFITS & PENSIONS
Qualifying contribution is a contribution that accrues rights to a benefit (usually a social security benefit); contributions may include actual paid contributions and credited contributions (such as for periods of study).
EMPLOYEE BENEFITS & PENSIONS
Qualifying insurance is the period in which the employee accrues rights to a benefit (usually a social security benefit).
LEGAL & DISPUTE RESOLUTION
Quantum is the monetary amount payable by way of indemnity.
FINANCIAL & ACCOUNTING TERMS
Rate is another term for premium rate.
INTERNATIONAL INSURANCE & REGULATION
Resident expatriate is an employee that has been temporarily relocated to work in another country (a host country).
INSURANCE DISTRIBUTION
Retail broker is another term for broker, retail.
ISLAMIC INSURANCE
Retakaful is Islamic reinsurance that allows takaful operators to share or transfer risk in a Sharia-compliant way.
Read the full definition of Retakaful >LIFE & HEALTH INSURANCE
Reversionary Bonus is a bonus added to with-profit (participating) life assurance policies such as whole life or endowment, which is expressed as a percentage of the sum assured and previously declared reversionary bonuses.
NATURAL CATASTROPHE & WEATHER
The Saffir-Simpson scale is a hurricane wind scale used to classify tropical cyclones by sustained wind speed and potential damage.
NATURAL CATASTROPHE & WEATHER
Saffir-Simpson scale values classify hurricanes by wind speed and likely property damage under the Saffir-Simpson scale.
EMPLOYEE BENEFITS & PENSIONS
Salary is an insurance term that refers to remuneration received by an employee that is paid weekly, monthly or annually, as opposed to hourly pay.
EMPLOYEE BENEFITS & PENSIONS
Salary continuance insurance is an insurance plan that provides a prescribed level of salary replacement on the occurrence of an insured event, such as disablement and sickness.
EMPLOYEE BENEFITS & PENSIONS
Salary sacrifice is an arrangement between the employer and the employee whereby a part of the employee’s salary is forfeited in return for an equivalent benefit; for example, an employer pension plan contribution.
INTERNATIONAL INSURANCE & REGULATION
The Schengen area is a European travel zone where participating countries allow free movement of people across internal borders.
LIFE & HEALTH INSURANCE
School fees insurance is life assurance used to provide cash at relevant times to help pay a child’s school fees.
LIABILITY INSURANCE
The second party in insurance is typically the insured or policyholder covered by the policy.
LIFE & HEALTH INSURANCE
Select Mortality Table is a mortality table based on selected lives only and not the general population e.g. lives accepted for insuranc.
LIFE & HEALTH INSURANCE
Selection of Lives is the practice in life assurance of underwriting lives mainly from a health perspective and segregating them into categories of standard, sub- standard (known as “impaired lives”) and declined.
INVESTMENT & SAVINGS PRODUCTS
Self-Investment is an insurance term that refers to investment of part or all of the resources of a self-administered pension scheme in the business of the employer or in that of an associated company.
INTERNATIONAL INSURANCE & REGULATION
Services business is another term for cross-border business.
CLAIMS & POLICY MECHANICS
Severance pay is a lump sum benefit payable on termination of employment, as a type of termination indemnity.
MARINE & CARGO INSURANCE
Shipping and forwarding agent is another term for agent, shipping and forwarding.
EMPLOYEE BENEFITS & PENSIONS
Short-term sickness is a disability, disease or illness that is usually expected to last for less than two years.
LIFE & HEALTH INSURANCE
Simple Reversionary Bonus is a bonus added to with-profit (participating) life assurance policies such as whole life or endowment, which is expressed as a percentage of the sum assured only.
INVESTMENT & SAVINGS PRODUCTS
Single Premium Bonds is a policy issued by a life insurer in return for a single premium as opposed to regular premium payments.
EMPLOYEE BENEFITS & PENSIONS
Single Premium Costing Method is a method used in pension schemes to determine the premiums payable under an insurance contract with the object of meeting, within each year.
EMPLOYEE BENEFITS & PENSIONS
Social security is a state programme covering employees and dependents that usually includes retirement, death, disability and related benefits.
EMPLOYEE BENEFITS & PENSIONS
Social security agreement is an agreement between countries that prescribes the social security system obligations and entitlements of employees who work in other agreement countries.
EMPLOYEE BENEFITS & PENSIONS
Social welfare is a government programme that provides benefits to those in need of financial assistance.
PROPERTY INSURANCE
Special perils is another term for all risks.
PROPERTY INSURANCE
Specified perils is another term for named perils.
EMPLOYEE BENEFITS & PENSIONS
A stock option is an employee benefit that gives an employee the right to buy company shares at a set price.
CLAIMS & POLICY MECHANICS
The principle of subrogation allows an insurer to recover claim payments from a third party responsible for the insured loss.
Read the full definition of Subrogation, principle of >CLAIMS & POLICY MECHANICS
Sum insured is the maximum amount specified in a policy for which an insurer will provide cover for an insured item or risk.
Read the full definition of Sum insured >LIFE & HEALTH INSURANCE
Sums Assured (Insured) in Force is the total face value of policies insured by a life insurer that are currently in force.
LIFE & HEALTH INSURANCE
Surrender is the act of terminating an existing life assurance (whole life or endowment) and receiving the current surrender value in cash.
ISLAMIC INSURANCE
Takaful is Islamic insurance based on mutual assistance, where participants contribute to a shared fund used to pay eligible claims.
Read the full definition of Takaful >ISLAMIC INSURANCE
Family takaful is Islamic insurance for life, savings, protection and retirement needs.
ISLAMIC INSURANCE
General takaful is Islamic insurance for non-life or property and casualty risks, similar to general insurance in conventional markets.
EMPLOYEE BENEFITS & PENSIONS
Tax credit is a reduction in the amount of tax payable.
EMPLOYEE BENEFITS & PENSIONS
Tax deduction is a reduction in the amount of taxable income that is subject to income tax or corporate income tax.
LIFE & HEALTH INSURANCE
Temporary Annuity is an annuity under which the payments to an annuitant will cease at the end of a given period or at death, whichever shall occur first.
LIFE & HEALTH INSURANCE
Ten Plus Policy is an insurance term that to describe a ten-year endowment or whole life policy under which premiums must be paid for a minimum of 10 years.
LIFE & HEALTH INSURANCE
Term Assurance/ Insurance is a life policy that pays the sum insured only if death occurs within the term of the policy.
LIFE & HEALTH INSURANCE
Terminal Bonus is an additional bonus added to existing life assurance benefits when a with-profits policy becomes a claim by death or survival of the policy term.
EMPLOYEE BENEFITS & PENSIONS
Terminal Funding is a pensions arrangement not common in the UK, except for discretionary pension increases.
EMPLOYEE BENEFITS & PENSIONS
Termination indemnities is the legal obligation of the employer to make payment to an employee upon termination of the employment contract.
LIABILITY INSURANCE
A third party is a person or organisation that makes a claim against the insured or policyholder.
INSURANCE DISTRIBUTION
Tied agent is another term for agent, tied.
EMPLOYEE BENEFITS & PENSIONS
Top hat scheme is a special scheme for selected employees (usually senior executives).
EMPLOYEE BENEFITS & PENSIONS
Transfer value is the value of pension benefits transferred from a previous employer’s scheme into a new pension or personal pension arrangement.
LIFE & HEALTH INSURANCE
Two Tier Bonus System is a life assurance bonus system that awards with-profits policyholders one rate of bonus on the sum assured and a different rate of bonus on the previously declared reversionary bonuses.
UNDERWRITING & DISCLOSURE
Uberimma fides is another term for utmost good faith.
CLAIMS & POLICY MECHANICS
Underinsurance is a situation where the insured value is lower than the actual value at risk, which can reduce claim payments.
Read the full definition of Underinsurance >PROPERTY INSURANCE
Uninsured perils is another term for unnamed perils.
INVESTMENT & SAVINGS PRODUCTS
Unit linked is a pooled investment plan in which individual units are purchased with a lump sum, by regular investment or both.
INVESTMENT & SAVINGS PRODUCTS
Unit Trust is an insurance term that refers to called a mutual fund in the US.
INVESTMENT & SAVINGS PRODUCTS
Unitised Funds is an insurance term that refers to investment funds akin to unit trusts which are managed internally by life insurers.
LIFE & HEALTH INSURANCE
Unit-Linked Life Assurance is an insurance term that refers to called variable life in the US.
LIFE & HEALTH INSURANCE
Universal Life Assurance is a US concept which has become international, it is a policy which operates as a flexible whole life assurance and allows the policyholder to change both premiums and life cover.
PROPERTY INSURANCE
Unnamed perils is an insurance term that refers to those perils that are not declared at all in an insurance policy, as being either covered or not covered by that policy.
PROPERTY INSURANCE
Unspecified perils is another term for unnamed perils.
UNDERWRITING & DISCLOSURE
Utmost good faith is an insurance principle requiring both parties to disclose material information honestly before and during the contract.
Read the full definition of Utmost good faith >CLAIMS & POLICY MECHANICS
Valuation is an insurance term that refers to annual assessment of the insurer’s assets and liabilities in the manner required by law or by the supervisory authorities.
CLAIMS & POLICY MECHANICS
A valued policy is insurance where the insurer and insured agree the value at risk at policy inception.
LIFE & HEALTH INSURANCE
Variable Annuities is an annuity contract under which the payments to the annuitant will vary with the results of an investment portfolio or will be linked to a cost of living index.
LIFE & HEALTH INSURANCE
Variable Life is the US version of unit-linked life assurance in the UK.
LIFE & HEALTH INSURANCE
Variable Universal Life Assurance is an insurance term that refers to combines the premium flexibility features of a universal life policy with the investment features of a variable life policy.
EMPLOYEE BENEFITS & PENSIONS
Vesting is an insurance term that to indicate the period of time before which ownership of the rights under a retirement or other benefit plan will transfer to the employee.
EMPLOYEE BENEFITS & PENSIONS
Vesting Bonus is the (reversionary) bonus declared in respect of and allotted to with-profits life policies.
LIFE & HEALTH INSURANCE
Waiting period is a period during which benefits are not payable (for example, the first three days of illness) or do not accrue (for example, the first six months of employment).
LIFE & HEALTH INSURANCE
Waiver of premium is a policy benefit where the insurer continues premiums or contributions after an insured disability or qualifying event.
ISLAMIC INSURANCE
Wakala is an Islamic insurance agency model where a takaful operator manages members’ funds in return for a fee.
ISLAMIC INSURANCE
Waqf is a takaful structure in Islamic insurance where member contributions are treated as donations to a shared risk fund.
EMPLOYEE BENEFITS & PENSIONS
White collar employee is a term that describes an employee who performs non-manual labour.
LIFE & HEALTH INSURANCE
Whole Life Assurance is a policy which will remain in force (subject to continuing premium payment) until the life assured dies, when the sum assured becomes payable.
INSURANCE DISTRIBUTION
Wholesale broker is another term for broker, wholesale.
NATURAL CATASTROPHE & WEATHER
Wildfire is an insurance term that refers to catch-all term used to refer to the variety of fires that occur in the wild due to natural phenomena in climate or weather.
LIFE & HEALTH INSURANCE
Without-profits policies are life assurance policies that guarantee a fixed sum without adding profit-related bonuses.
LIFE & HEALTH INSURANCE
With-profits policies are life assurance policies that share in an insurer’s profits through bonuses added to the policy value.
LIABILITY INSURANCE
Workers’ compensation is insurance or a statutory scheme that provides medical, income and compensation benefits for work-related injury, illness or disease.
Read the full definition of Workers’ compensation >There are currently no glossary terms under X.
There are currently no glossary terms under Y.
FINANCIAL & ACCOUNTING TERMS
Zillmerisation is the process whereby an adjustment is made in the actuarial valuation of long-term business to take credit for the recovery from future premiums of the costs of acquiring new business.
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