The aggregate of the paid and outstanding claims of an insurer or reinsurer for a year of account or some other given period of time. These losses represent known losses to an insurer or reinsurer and, subject to issues of proof of liability and the determination of the final amount payable in the case of outstanding claims, are relatively certain.
admin
Incurred but not reported (IBNR) losses : Insurance Glossary
Estimated losses which an insurer or reinsurer, based on its knowledge or experience of underwriting similar contracts, believes have arisen or will arise under one or more contracts of insurance or reinsurance, but which have not been notified to an insurer or reinsurer at the time of their estimation.
Inception date : Insurance Glossary
The date on which an insurance or reinsurance contract comes into force.
Inception : Insurance Glossary
Commencement or beginning (eg of cover).
Hazardous pursuits : Insurance Glossary
Certain sports and activities are termed hazardous pursuits and are excluded from travel insurances although it may be possible to have them included on payment of an additional premium.
Hazard : Insurance Glossary
Something that causes an exposure to injury, loss or damage.
Hard market : Insurance Glossary
When the availability of some or all classes of insurance or reinsurances is limited relative to demand for such insurance or reinsurance resulting in increased premiums and coverage restrictions.
Gross premium : Insurance Glossary
Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums.
Gross line : Insurance Glossary
The amount of risk that an insurer or reinsurer is carrying before taking account of any applicable reinsurance that reduces that risk.
Gross claims : Insurance Glossary
Claims under contracts of insurance underwritten by the members of a syndicate plus internal and external claims settlement expenses less salvage or other recoveries, but before the deduction of reinsurance recoveries.
Grace period : Insurance Glossary
A short period during which cover under an annual policy may be extended beyond its expiry date to allow for the payment of a renewal premium. The privilege will be lost if the insured rejects the proposed renewal terms, by his actions or words.
There are no grace periods in motor or marine insurance.
General underwriters’ agreement : Insurance Glossary
An agreement between insurers and reinsurers on a subscription risk specifying the terms on which the leading underwriter shall act as the agent of the following underwriters as regards the agreement of amendments to coverage terms.
General average : Insurance Glossary
A loss that arises from the reasonable sacrifice at a time of peril of any part of a ship or its cargo for the purpose of preserving the ship and the remainder of its cargo together with any expenditure made for the same purpose.
An example of a general average loss would include jettisoning cargo to keep a ship afloat and an example of general average expenditure would include towing a stricken vessel into port.
An average adjuster calculates the value of each saved interest to each interested party which is then obliged to contribute towards the general average loss or expenditure proportionately. Subject to the terms of the policy, insurance will generally only apply if the loss was incurred to avoid or in connection with the avoidance of an insured peril.
Freedom of services : Insurance Glossary
The right to provide services on a cross-border basis within the European Union (EU). The essential feature so far as the provision of insurance is concerned is that the contract is made in an EU member state which is different from the member state where the risk is located (see European Union/European Economic Area risk). It therefore covers open market business (with or without the involvement of a local intermediary) and business that is written under any binding authority where the local coverholder does not have authority to enter into contracts of insurance without first consulting the managing agent that granted the binding authority.
Freedom of establishment : Insurance Glossary
In the context of insurance the right of an insurer located in one member state of the European Union (“EU”) to sell insurance in another member state of the EU through a local branch, agency or subsidiary.
Franchisee : Insurance Glossary
A managing agent.
Following underwriter : Insurance Glossary
An underwriter of a syndicate or an insurance company that agrees to accept a proportion of a given risk on terms set by another underwriter called the leading underwriter.
Fidelity insurance : Insurance Glossary
A type of insurance which is designed to protect a firm from losses caused by the dishonest acts of its employees.
Fee for service : Insurance Glossary
Where a broker is remunerated on the basis of a fee agreed with its client instead of brokerage. The benefit to the broker is that, subject to the terms of agreement, the fee will be payable whether or not cover is placed whereas brokerage is only payable in respect of the placement of cover.
Facultative/obligatory treaty : Insurance Glossary
A reinsurance contract which allows the reassured to select which risks of a given type are to be ceded to the reinsurer. The reinsurer is obliged to accept all the cessions made by the reassured provided they fall within the scope of the treaty.
Prev
