Insurance Glossary
Policy wording is dense by design. This glossary explains the terms HR, finance, and risk teams meet when placing and servicing employee benefits, so you can ask sharper questions and make better decisions.
Press / to search · Esc to clear
Absolute owner is the person or legal entity that has complete ownership rights over an asset, policy, account, or investment and can usually sell, transfer, assign, pledge, or surrender it without needing permission from another owner.
Accident is a sudden, unintended, and unexpected event that causes injury, damage, or loss.
Accidental damage is physical damage caused by an unexpected mishap rather than deliberate action, poor maintenance, or normal wear and tear.
Accidental death is death caused directly by an accident rather than by illness, natural causes, or an intentionally self-inflicted event.
Accidental death benefit is an additional insurance benefit payable when an insured person dies as the direct result of an accident, subject to policy definitions, exclusions, and time limits.
Account is a record used to track money, contributions, premiums, balances, benefits, claims, or investment holdings for a person, employer, policy, scheme, or client relationship.
Accrue is to build up over time.
Accumulation is the build-up of value, exposure, premiums, contributions, or risk over time.
Act of god is a natural event outside human control, such as an earthquake, flood, lightning strike, cyclone, or severe storm, that may trigger or be excluded from insurance depending on the policy wording.
Active management is an investment approach where a manager makes deliberate decisions about which securities to buy, hold, or sell in an attempt to outperform a benchmark or manage risk differently from the market.
Actual asset allocation is the real percentage split of a portfolio across asset classes at a point in time, such as equities, bonds, cash, property, and alternatives, after market movement and transactions.
Actual cash value (ACV) is a valuation method that pays the value of damaged property after allowing for age, condition, and depreciation, rather than the full cost of replacing it with new property.
Actuary is a professional who uses statistics, financial modeling, and risk analysis to estimate the cost of uncertain future events such as claims, mortality, medical inflation, pensions, and catastrophe losses.
Addendum is an additional document attached to a contract, policy, proposal, or disclosure document that adds, clarifies, or amends terms without replacing the whole document.
Additional premium is extra premium charged when the risk being insured increases, new cover is added, policy limits are raised, or a mid-term change creates more exposure for the insurer.
Administration manager is the person or team responsible for operational tasks in a benefit plan or insurance program, such as member records, endorsements, premium reconciliation, claims coordination, and service queries.
Administrator is a person, third-party firm, or internal team that handles day-to-day policy or scheme operations, including enrollment, documentation, billing, claims support, data updates, and member communications.
Admitted Coverage is insurance cover issued by an insurer licensed or authorised in the jurisdiction where the risk is located.
Advance Cash Benefit is a feature that pays part of the benefit amount early when a specified event occurs, such as hospitalization, terminal illness, or an approved emergency expense, before final claim settlement is completed.
Advancement is the payment or release of funds before final entitlement is fully determined.
Affidavit is a written statement of facts sworn or affirmed to be true, often used in legal, claims, probate, or beneficiary matters when evidence needs to be formally declared.
Age band is a pricing or eligibility range based on age, commonly used in health, life, and employee benefit insurance to group members with similar expected claim or mortality costs.
Agent is a person or entity authorised to act on behalf of an insurer, intermediary, or client, depending on the appointment, and to perform tasks such as selling policies, collecting information, or servicing cover.
Aggregate Limit is the maximum amount an insurer will pay for all covered claims during a policy period, regardless of the number of claims, claimants, or events.
Aggregate limit of indemnity is the total cap on indemnity available under a policy over the whole insurance period.
All risks is a style of property wording that covers physical loss or damage from any cause unless that cause is specifically excluded, rather than covering only named perils.
Allocation rate is the percentage of a premium, contribution, or investment amount that is actually invested after deductions such as charges, fees, or allocation spreads.
Alternative investments is investments outside traditional listed equities, bonds, and cash, such as private equity, hedge funds, infrastructure, commodities, real estate, or private credit.
Ambulance Cover is health insurance or employee benefit cover that pays eligible ambulance transportation costs, usually for emergency medical transport and sometimes for planned transfers if medically necessary.
American Depositary Receipt (ADR) is a negotiable receipt issued by a US depositary bank that represents shares in a non-US company and allows those shares to trade in US markets.
Annual allowance is a yearly limit on the amount that can be contributed to certain pension arrangements with tax advantages before additional tax charges may apply, depending on the relevant jurisdiction.
Annual management charge is the yearly fee charged by a fund manager, pension provider, or investment platform for managing a fund or investment product.
Annual payment is a payment made once every year, such as an annual insurance premium, annuity payment, pension contribution, renewal fee, or benefit instalment.
Annual percentage rate is a standardised yearly measure of borrowing cost that includes interest and certain charges, helping borrowers compare loans or credit terms.
Annual premium is the total amount charged for one year of insurance cover, whether paid upfront or split into instalments.
Annual report is a yearly document that summarises an organization, fund, insurer, or scheme’s performance, financial position, governance, and significant developments.
Annuitant is the person whose life is used to calculate annuity payments and, in many cases, whose survival determines how long the annuity continues.
Annuity is a financial product that converts a lump sum into regular income, often for life or for a fixed period, and is commonly used in retirement planning.
Annuity protection is a feature that protects part of the value of an annuity if the annuitant dies earlier than expected, often by paying a lump sum or continuing payments to a beneficiary.
Annuity rate is the conversion rate used to calculate how much regular income an annuity provider will pay for a given lump sum, based on age, interest rates, life expectancy, options, and provider pricing.
Anti-Money Laundering (AML) Rules is laws, controls, and procedures designed to prevent financial services, insurance, and investment products from being used to hide criminal proceeds or finance illegal activity.
Appointed representative is a person or firm that carries out regulated activities under the responsibility and oversight of an authorised principal firm, rather than holding its own direct authorisation.
Article 50 of the Treaty on European Union is the treaty mechanism that allows a member state to notify the European Council of its intention to leave the European Union and begin the withdrawal process.
Asset is something with economic value that a person, company, fund, or insurer owns or controls, such as cash, investments, property, equipment, receivables, or intangible rights.
Asset allocation is the way an investment portfolio is divided across asset classes such as equities, bonds, cash, property, and alternatives to balance expected return and risk.
Asset class is a broad group of investments with similar risk, return, and market behavior, such as equities, fixed interest, property, cash, commodities, or alternatives.
Assets is the total economic resources owned or controlled by an organization, fund, insurer, trust, or individual and expected to provide future value.
Assurance is a term often used for life insurance arrangements where a benefit is certain to be paid at some point, such as on death, rather than cover for an uncertain event only.
Attachment Point is the level of loss at which an excess policy, reinsurance layer, or additional insurance layer begins to pay.
Attributed tax is tax allocated or attributed to an investor, member, or account, often within pooled investment or portfolio investment entity arrangements.
Attributed tax credit is a tax credit allocated to an investor or account, often representing tax already paid or credited within a pooled investment structure.
Authorised insurer is an insurer that has received the required regulatory license, approval, or authorisation to carry on insurance business in a jurisdiction.
Average is an insurance principle under which a claim payment may be reduced when the sum insured is less than the value that should have been insured.
Average Condition is a policy condition that applies underinsurance adjustment, reducing the claim proportionately when the insured value is lower than the actual value at risk.
Balance is the amount remaining in an account, fund, deposit, policy, or ledger after credits, debits, charges, claims, payments, or investment movements have been applied.
Benchmark asset allocation is a model or target asset split used to compare an investment portfolio’s actual asset allocation and performance against an agreed reference point.
Benchmark return is the return generated by a benchmark index or model portfolio over a period, used to assess whether an investment manager or fund has performed well.
Beneficiary is the person, trust, estate, or organization nominated to receive a benefit from a life policy, pension, annuity, employee benefit plan, or other financial arrangement.
Benefit is the payment, service, protection, or entitlement provided under an insurance policy, employee benefit scheme, pension arrangement, or assistance program.
Bid or offer spread is the difference between the price at which units or securities can be sold and the price at which they can be bought, reflecting transaction costs or provider charges.
Bid price is the price at which an investment provider, market maker, or fund will buy units or securities from an investor.
Bifurcated Trial is a legal trial split into two or more phases, commonly separating liability issues from damages issues to make complex litigation more manageable.
Binder is temporary evidence of insurance that confirms cover is in force before the full policy documents are issued, subject to the terms stated in the binder.
Blacklisted hospital is a healthcare provider excluded by an insurer or third-party administrator because of concerns such as fraud, billing irregularities, quality issues, or network termination.
Bond is a debt investment in which an investor lends money to an issuer, such as a government or company, in return for interest and repayment of principal.
Bonus is an additional amount added to a benefit, policy value, salary, or investment return, depending on the product or scheme rules.
Branch or Representative Office is a local presence used by a foreign insurer, broker, or company to conduct approved business, service clients, or represent the organization in a particular jurisdiction.
Brexit is the United Kingdom’s withdrawal from the European Union, a change that affected regulation, passporting, insurance distribution, cross-border services, and multinational program structures.
Brexit-Proofing is planning insurance, legal, operational, and regulatory arrangements so that cross-border business can continue after changes caused by Brexit.
Bribery Act 2010 (UK) is UK legislation that addresses bribery offences, corporate failure to prevent bribery, and compliance expectations for organizations operating in or connected with the UK.
BRIC is an acronym for Brazil, Russia, India, and China, often used to describe major emerging economies with significant growth, investment, and insurance market relevance.
Broker is an insurance intermediary that advises clients, approaches insurers, negotiates terms, helps place cover, and supports policy servicing and claims advocacy.
Business insurance is insurance purchased by a company or professional organization to protect against operational, property, liability, employee, cyber, financial, and other commercial risks.
Business interruption is insurance that protects against loss of income and extra expenses after insured physical damage or another covered event disrupts normal business operations.
Buy/sell spread is the difference between the price for buying units in an investment fund and the price for selling units, usually reflecting transaction costs borne by investors entering or leaving the fund.
Cancellation is the ending of an insurance policy before its scheduled expiry date, either by the insurer or policyholder and subject to policy terms and law.
Capacity is the amount of insurance or reinsurance limit that an insurer, reinsurer, or market is willing and able to provide for a risk or program.
Capital is financial resources available to a business, insurer, investor, or fund to absorb losses, finance operations, support growth, or meet regulatory requirements.
Capital growth is an increase in the value of an investment or asset over time, excluding income such as interest or dividends unless reinvested.
Capital loss is a decrease in value realised when an asset or investment is sold for less than its purchase price or carrying value.
Cash is money or highly liquid holdings available for immediate use, including bank balances, deposits, money market holdings, or cash equivalents.
Cash Before Cover (CBC) is a rule requiring premium to be paid before insurance cover attaches or before policy documents are released.
Cash in value is the amount payable to a policyholder if a savings, investment-linked, endowment, or certain life policy is surrendered before maturity.
Cashless claim is a health insurance claim where the insurer or third-party administrator settles eligible hospital bills directly with the network hospital, rather than the insured paying first and seeking reimbursement.
Cashless treatment is medical treatment received at an approved hospital where eligible costs are paid directly by the insurer or administrator under the health policy.
Catastrophe Aggregation is the assessment of how many insured risks could be affected by one large catastrophe, such as an earthquake, flood, storm, cyber event, or terrorism incident.
Caveat is a warning, qualification, or legal notice that limits how a statement, cover indication, asset, or claim position should be understood.
CD Balance is Cash Deposit Balance, a prepaid balance maintained by an employer or policyholder with an insurer or administrator to support fast additions, endorsements, or claims-related funding under group health insurance.
Cedant is an insurer that transfers part of its risk to a reinsurer under a reinsurance arrangement.
Ceding Commission is commission paid by a reinsurer to a ceding insurer to reimburse acquisition costs, administration expenses, and sometimes provide profit sharing under a reinsurance treaty.
Certificate of Insurance is a document summarising key evidence of insurance, such as the policyholder, insurer, period, type of cover, limits, and sometimes important conditions.
Civil Law Jurisdiction is a legal system based primarily on codified statutes and written legal principles rather than binding judicial precedent.
Claim is a formal request for payment, service, defense, or another policy benefit after an insured event or covered circumstance occurs.
Claim frequency is the number of claims arising in a portfolio, policy, scheme, or time period, often measured relative to exposure such as employees, vehicles, policies, or turnover.
Claim settlement ratio is the percentage of claims settled by an insurer compared with claims received or decided during a period, often used as a broad service or reliability indicator.
Claims and underwriting exchange is a shared database or information exchange used by insurers to check claims history, underwriting information, fraud indicators, or other risk data.
Claims Made is a policy trigger under which the policy responds to claims first made against the insured during the policy period, subject to notification rules and any retroactive date.
Claims Occurring is a policy trigger under which the policy responds to insured events that happen during the policy period, even if the claim is reported later.
Co-insurance is a cost-sharing arrangement in which the insured and insurer each bear an agreed percentage of a covered loss, or a structure where multiple insurers share the same risk.
Collective investment scheme is an arrangement where money from many investors is pooled and managed together according to a stated investment objective and scheme rules.
Collective Redress Action (Class Action) is a legal action brought by one or more representatives on behalf of a wider group of people with similar claims or alleged losses.
Combined Ratio is a key property and casualty insurance measure that compares incurred losses and expenses with earned premium.
Commercial business is insurance, benefits, or advisory activity serving companies, professional firms, public bodies, and other organizations rather than personal consumers.
Commission is remuneration paid to an intermediary, agent, broker, or distributor for arranging, servicing, or renewing insurance or investment business.
Commodity is a basic physical good such as oil, gas, metals, grain, or other raw materials that may be traded or used as an investment exposure.
Common Law Jurisdiction is a legal system where court decisions and precedent play a central role alongside statutes and regulations.
Commutation is an agreement to settle and discharge future obligations under an insurance, reinsurance, pension, or annuity arrangement by making a current payment or adjustment.
Composite insurer is an insurer authorised to write more than one class of insurance business, commonly both life and general insurance depending on local rules.
Compulsory is required by law, regulation, contract, lender, lease, or scheme rules rather than chosen voluntarily.
Compulsory Coverage (Mandatory Coverage) is insurance that a person or organization must buy or maintain under law, regulation, contract, license, or market practice.
Compulsory excess is the fixed amount of each claim that the insured must bear because the policy requires it and it cannot be removed by choice.
Concealment is the withholding or hiding of material information that would influence an insurer’s underwriting, pricing, or claim decision.
Condition Precedent to Liability is a policy condition that must be satisfied before the insurer becomes liable to pay a claim.
Conditions is the duties, rules, limitations, procedures, and obligations that form part of an insurance policy or benefit contract.
Confirmation information is information provided to confirm an investor’s, member’s, policyholder’s, or client’s transaction, status, holdings, cover, or advice arrangement.
Consequential loss is indirect financial loss that follows from physical damage or another event, such as lost profits, increased working costs, or loss of rent.
Contents policy is insurance covering movable property inside premises, such as furniture, equipment, stock, fixtures, personal possessions, or business contents.
Contestable period is a period after a life or health policy begins during which the insurer can investigate misrepresentation or non-disclosure more closely and may contest a claim.
Contract is a legally binding agreement between parties that creates enforceable rights and obligations, such as an insurance policy, service agreement, or benefit contract.
Contracted out is the status of having opted out of part of a state pension or social security arrangement under previous rules, usually by participating in an approved alternative scheme.
Contribution is money paid into an insurance, pension, superannuation, benefit, or investment arrangement by an employee, employer, member, or policyholder.
Controlled Master Program (CMP) is a multinational insurance structure where a master policy coordinates local policies, coverage standards, limits, claims handling, and compliance requirements across countries.
Convertible term assurance is term life insurance that allows the policyholder to convert the temporary cover into another qualifying life policy without fresh medical underwriting, subject to conditions.
Cooling off period is a short period after buying a policy or financial product during which the customer may cancel and receive a refund, subject to rules and deductions.
Copay is a health insurance cost-sharing feature where the insured pays a fixed amount or percentage of an eligible claim and the insurer pays the balance.
Corporate Buffer is an additional reserve, limit, or funding cushion arranged by an employer to absorb employee health claims or benefit costs above standard plan provisions.
Corporate Manslaughter and Corporate Homicide Act of 2007 (UK) is UK legislation that can make organizations criminally liable when serious management failures cause a person’s death.
Correlated Loss Accumulation is the build-up of losses that can occur when multiple insured risks are connected by a common driver, such as geography, supplier dependence, cyber vulnerability, or economic shock.
Counterparty is the other party to a contract, transaction, investment, derivative, reinsurance arrangement, or service agreement.
Cover note is temporary written confirmation that insurance cover is in place until the formal policy schedule or certificate is issued.
Coverage is the protection provided by an insurance policy, including insured events, people, property, liabilities, limits, extensions, exclusions, and conditions.
Credit is an amount recorded in favor of an account, customer, policyholder, investor, or ledger, or the ability to borrow money on agreed terms.
Creditor is a person or organization owed money by another party, such as a lender, supplier, bondholder, reinsurer, or claimant with an established debt.
Critical illness cover is insurance that pays a lump sum or defined benefit when the insured is diagnosed with a specified serious illness and survives any required waiting period.
Currency is the money unit used in a country or transaction, and in insurance it affects premiums, limits, claims settlement, investment returns, and multinational program reporting.
Currency Devaluation Endorsement is a policy endorsement that addresses the effect of currency devaluation on limits, premiums, claim payments, or local policy values.
Currency hedging is a strategy used to reduce the effect of exchange rate movement on investments, premiums, claims, or cross-border cash flows.
Current assets is assets expected to be converted into cash, sold, or used within a normal operating cycle or within one year, such as cash, receivables, inventory, and short-term investments.
Current liabilities is obligations expected to be settled within one year or the normal operating cycle, such as payables, short-term debt, taxes, premiums payable, or accrued expenses.
Custodian is a financial institution or specialist provider that holds assets safely on behalf of investors, funds, pension schemes, or trustees.
Cyber Extortion is a cyber incident where criminals demand payment by threatening to encrypt systems, leak data, disrupt operations, or continue an attack.
Data Breach is an incident in which personal, confidential, regulated, or sensitive information is accessed, disclosed, altered, lost, or stolen without authorisation.
Data Protection Officer (DPO) is a person appointed to oversee privacy compliance, data protection governance, and communication with regulators and data subjects where required.
Day care treatment is medical treatment or surgery that requires hospital facilities but does not require a 24-hour admission because modern procedures allow same-day discharge.
Daycare treatment is medical treatment or surgery that requires hospital facilities but does not require a 24-hour admission because modern procedures allow same-day discharge.
De Facto Director is a person who acts as a director and participates in directing a company even if they have not been formally appointed as a director.
Decarbonisation is the process of reducing carbon emissions from operations, supply chains, assets, or investments, often linked to climate risk management and transition planning.
Declined risk is a proposed risk that an insurer chooses not to insure because it falls outside underwriting appetite, lacks information, exceeds capacity, or presents unacceptable loss potential.
Decreasing term insurance is term life insurance where the sum insured reduces over time, often designed to track a repayment mortgage or declining loan balance.
Decumulation is the phase in which accumulated savings or pension assets are gradually converted into income, withdrawals, annuity payments, or retirement spending.
Deductible is the amount of each covered loss that the insured must pay before the insurer begins paying the remaining eligible amount.
Deductibles is the amounts the insured bears on covered claims before insurance recovery begins, which may vary by coverage, peril, location, or policy layer.
Default fund is the investment fund into which contributions are placed when a member does not make an active investment choice.
Deferred Member is a person who has left active membership of a pension or benefit scheme but still has preserved benefits payable in the future.
Deferred premium is premium that is payable later than the policy inception date, often under an instalment, adjustment, or subject-to-declaration arrangement.
Defined ambition is a pension design that aims to provide a target level of retirement outcome without giving the full guarantee of a traditional defined benefit scheme.
Defined benefit pension scheme is a pension scheme that promises benefits using a formula, often based on salary and service, with the employer or scheme bearing much of the funding risk.
Defined contribution pension scheme is a pension scheme where contributions are paid into an account and retirement benefits depend on contributions, investment returns, charges, and retirement choices.
Defined contribution scheme is a retirement arrangement where the contribution is defined but the final benefit is not guaranteed and depends on investment performance and member decisions.
Dependant is a person who relies on the insured, employee, member, or policyholder for financial support and may be eligible for benefits under a scheme or policy.
Dependents is family members or other eligible people who depend on an employee or insured person and may be covered under health, life, pension, or employee benefit plans.
Depreciation is the reduction in value of an asset over time due to age, use, wear, obsolescence, or market conditions.
Derivatives is financial contracts whose value is derived from an underlying asset, rate, index, currency, commodity, or event.
Difference in Conditions (DIC) is insurance designed to fill gaps in coverage where an underlying local policy or primary policy does not respond, often used in multinational and D&O programmes.
Difference in Limits (DIL) is coverage that provides additional limit when a local policy limit is lower than the master policy limit in a multinational insurance program.
Direct sales is distribution where an insurer or provider sells directly to customers without an independent broker or intermediary.
Disclose Register is New Zealand’s public register for offers of financial products and managed investment schemes under the Financial Markets Conduct Act 2013.
Dispute resolution scheme is an independent process for handling complaints between customers and financial service providers, insurers, advisers, or schemes when the parties cannot resolve the matter directly.
Distribution bond is an investment bond or product designed to provide regular withdrawals or distributions while keeping the remaining capital invested.
Distributor is a person or organization that markets, sells, or arranges insurance, investment, or benefit products to customers or employers.
Diversification is spreading investments, exposures, suppliers, insurers, or risks across different categories so that one adverse event has less impact on the whole portfolio.
Domiciliary expenses is medical expenses incurred for treatment at home when hospitalization is not possible or not medically necessary under policy terms.
Domiciliary hospitalization is treatment at home that is treated as hospitalization under a health policy because the patient cannot be moved to hospital or hospital beds are unavailable, subject to conditions.
Dual Boards (Two-Tiered or Binary Boards) is a governance structure with separate management and supervisory boards, commonly seen in some civil law jurisdictions.
Duty of Fair Presentation is a duty under UK commercial insurance law requiring the insured to disclose material circumstances or give the insurer enough information to make further enquiries before the contract is made.
Eligible capital is capital that qualifies under regulatory rules to meet an insurer’s, bank’s, or financial institution’s capital requirement.
Employer is the organization or person that hires employees and may sponsor, fund, administer, or contribute to employee benefit and insurance programmes.
Employer contribution is the amount an employer pays into a pension, superannuation, insurance, or employee benefit arrangement on behalf of employees or members.
Endorsement is a document that changes, adds, removes, or clarifies terms in an insurance policy after issue or at renewal.
Endowment is a savings or life assurance arrangement that pays a benefit at maturity or on earlier death, depending on the policy terms.
Endowment policy is a life assurance policy combining protection and savings, paying a lump sum at the end of a fixed term or on death during the term.
Enhanced annuity is an annuity that pays higher income because the annuitant has health conditions, lifestyle factors, or other characteristics that reduce life expectancy.
Equities is shares or ownership interests in companies, giving investors exposure to company profits, dividends, and market value changes.
Escalating annuity is an annuity whose payments increase over time by a fixed percentage or inflation measure to help protect income against rising prices.
Escalation benefit is a benefit feature that increases the insured sum, payment amount, or cover level over time, often to offset inflation or salary growth.
European Economic Area (EEA) is the area that extends the EU single market to include Iceland, Liechtenstein, and Norway, affecting cross-border financial services and insurance rules.
European Union (EU) is a political and economic union of European member states that creates shared rules affecting trade, regulation, financial services, data protection, and insurance markets.
Evidence of insurability is information proving that a person or risk is acceptable for insurance, such as health declarations, medical evidence, financial information, or underwriting questionnaires.
Ex-gratia payment is a payment made voluntarily by an insurer or organization without admitting legal liability or confirming that the claim is covered under the policy.
Excess is the amount of a claim that the insured must pay before the insurer contributes, similar to a deductible in many markets.
Excess of Loss is insurance or reinsurance that responds only when losses exceed a specified retention or attachment point, up to the layer limit.
Exchange is a marketplace, platform, or organised system where securities, commodities, currencies, insurance risks, or information are traded or exchanged.
Exclusion is a policy provision that removes specified events, losses, property, people, activities, or circumstances from cover.
Exclusions is the parts of a policy that state what is not covered, helping define the boundaries of the insurer’s promise.
Export credit insurance is insurance that protects exporters or lenders against non-payment by overseas buyers due to commercial or political risks.
Exposure is the amount, value, activity, location, person, or circumstance that is at risk and could give rise to an insured loss.
Extended warranty is cover that extends protection for repair or replacement of a product after the manufacturer’s standard warranty ends.
Family income benefit is life insurance that pays a regular income to beneficiaries for the remaining policy term if the insured dies during that term.
Fees is charges paid for services, administration, advice, fund management, policy issuance, claims handling, or other financial and insurance activities.
Financial adviser is a professional who gives advice on financial products, insurance, investments, pensions, protection, or planning, subject to regulatory permissions.
Financial Interest Clause (FINC) is a clause in a master policy intended to protect the parent company’s financial interest in overseas subsidiaries when local admitted insurance cannot be arranged or paid directly.
Financial Markets Authority (FMA) is New Zealand’s financial markets conduct regulator, overseeing areas such as investment markets, financial advice, managed schemes, and disclosure.
First Loss Insurance is insurance that covers losses up to a selected first-loss limit, rather than insuring the full total value at risk.
Fixed asset is a long-term asset used in business operations, such as buildings, machinery, vehicles, systems, or equipment, rather than held for immediate sale.
Fixed interest investment is an investment that generally pays a set or predictable rate of interest, such as bonds, term deposits, or certain debt securities.
Fixed interest rate is an interest rate that stays the same for an agreed period, giving certainty over borrowing costs or investment income.
Flexible coverage is insurance cover designed with options, adjustable limits, optional extensions, or modular benefits so it can be tailored to different needs.
FMCA is the Financial Markets Conduct Act 2013 in New Zealand, a key law governing financial product offers, disclosure, fair dealing, licensing, and market conduct.
Foreign Corrupt Practices Act (FCPA) is US legislation that prohibits bribery of foreign officials and requires certain companies to maintain accurate books, records, and internal controls.
Foreign exchange rate is the price at which one currency can be converted into another, affecting international premiums, claims, limits, investments, and invoices.
Freedom of Services (FOS) is a European insurance and financial services concept allowing authorised firms in one member state to provide certain services into another without a local branch, subject to rules.
Freelook period is a period after receiving a policy during which the policyholder can review the terms and cancel for a refund, subject to permitted deductions.
Friendly society is a mutual organization that provides benefits such as insurance, savings, pensions, or welfare support to members.
Fronting Arrangement is an arrangement where a locally licensed insurer issues a policy but transfers most or all of the risk to another insurer or reinsurer, often for compliance in multinational programmes.
Fund is a pool of money collected from investors, policyholders, employers, or members and managed for a stated purpose, such as investment, claims payment, or benefits.
Fund update is a periodic report giving investors or members information about a fund’s performance, holdings, fees, risk indicators, and material changes.
General Data Protection Regulation (GDPR) is the EU data protection law setting rules for processing personal data and giving individuals rights over their information.
General insurance is insurance covering non-life risks such as property, liability, motor, travel, marine, health in some markets, and business interruption.
Glass replacement is cover for repairing or replacing broken glass in buildings, vehicles, shopfronts, windows, partitions, or other insured property.
Global Equivalent is a comparable standard, limit, coverage, or requirement applied across countries in a multinational insurance program to achieve consistency despite local differences.
Global Network is the network of owned offices, partner brokers, insurers, administrators, and service teams used to deliver insurance and benefit programmes across countries.
Globex International Group is a global insurance service organization that helps partner brokers and markets support multinational clients with property and casualty, health and benefits, and international program services.
Good Local Standard is a standard of local insurance cover that is considered appropriate and customary in a particular country, even if it differs from the master policy wording.
Grace period is extra time after a premium due date during which cover may continue and payment can still be made without immediate lapse, subject to policy terms.
Gross is an amount before deductions such as tax, commission, fees, reinsurance, expenses, depreciation, or other adjustments.
Gross interest is interest before tax or other deductions are taken out.
Gross premium is premium before deductions or adjustments such as commission, taxes, fees, discounts, or reinsurance allocations.
Group personal pension is a pension arrangement set up by an employer where each employee has an individual personal pension contract, usually with employer facilitation and contributions.
Growth assets is investments expected to deliver capital growth over the medium to long term, such as equities, property, and some alternatives, usually with higher volatility than income assets.
Guarantee period is a period during which an annuity, pension, or benefit payment will continue even if the original recipient dies.
Guaranteed annuity rate is a contractual rate that promises a minimum annuity income conversion, often more valuable when market annuity rates fall.
Guaranteed bond is a bond or investment product that offers a guarantee of capital, income, or return subject to issuer strength and product terms.
Guaranteed equity product is an investment product that provides exposure to equity markets while offering some form of capital or return guarantee.
Guaranteed minimum pension is a minimum pension benefit built up under certain historical contracted-out pension arrangements, often subject to complex equalisation and indexation rules.
Guaranteed premiums is insurance premiums that the insurer agrees not to increase for a defined period or for the life of the policy, subject to policy terms.
Health card is a physical or digital card issued to insured members to identify their health insurance coverage and help access network or cashless services.
Health insurance renewal is the process of continuing a health policy for a new policy period, often involving updated member data, claims review, premium negotiation, and benefit changes.
Hedging is using financial instruments, insurance, contracts, or operational strategies to reduce the effect of adverse movements in prices, rates, currencies, or other risks.
Holiday insurance is travel insurance covering risks such as emergency medical expenses, trip cancellation, lost baggage, travel delay, and personal liability during a holiday.
Home foreign policy is a master or parent-country policy designed to provide cover for foreign operations or subsidiaries, often as part of a controlled multinational program.
Home healthcare is medical care delivered at a patient’s home, such as nursing, rehabilitation, monitoring, or treatment, when covered by a health policy or employee benefit plan.
ICU limit is a sub-limit in a health insurance policy that caps the amount payable for intensive care unit room charges or related ICU expenses.
In-patient care is medical treatment requiring admission to a hospital for a defined minimum period, often 24 hours, unless the policy recognises specific day care procedures.
Inception date is the date on which insurance cover, a policy period, contract, investment, or benefit arrangement begins.
Inclusions is the coverages, benefits, services, expenses, or events expressly included within a policy or plan.
Income assets is investments held primarily to generate regular income, such as bonds, cash deposits, dividend-focused equities, or income funds.
Income drawdown is a retirement option allowing a member to keep pension savings invested while drawing income or withdrawals from the fund.
Income tax is tax charged on income such as salary, business profits, interest, dividends, pension income, or certain benefits.
Incoming (Reverse-Flow Business) is insurance business where a multinational program or client relationship flows into a country from a foreign parent or overseas broker rather than originating locally.
Increasing term is term insurance where the sum insured increases over time, often by a fixed percentage or inflation index, to preserve the value of protection.
Incurred Claim Ratio is a measure comparing incurred claims to earned premiums over a period, commonly used to assess the loss experience of health or general insurance portfolios.
Indemnification is the act of compensating a person or organization for covered loss, liability, defense costs, or damage so far as the policy or contract allows.
Indemnity is the principle of restoring the insured, as nearly as possible, to the financial position they were in immediately before the insured loss.
Indemnity Period is the maximum period for which business interruption insurance will pay covered loss of income and increased costs after an insured event.
Independent financial adviser is a financial adviser who is not tied to a single provider and can recommend products from a wider market, subject to local regulation.
Index fund is a fund designed to track the performance of a market index rather than actively selecting securities to outperform it.
Index-linked is linked to an index, such as inflation or a stock market index, so benefits, premiums, income, or investment values move in line with that measure.
Individual policy is an insurance policy issued to one person or entity rather than under a group, employer, or master arrangement.
Individual savings account is a tax-advantaged savings or investment account available to individuals in certain jurisdictions, subject to annual limits and eligibility rules.
Inflation is the general rise in prices over time, reducing purchasing power and increasing the cost of claims, repairs, medical treatment, salaries, and replacement values.
Insolvency is a financial state where a person, company, insurer, or counterparty cannot pay debts as they fall due or has liabilities exceeding assets.
Insolvent is unable to meet debts or financial obligations as they become due, or having insufficient assets to cover liabilities.
Insurable interest is a legal or financial relationship that means the policyholder would suffer a genuine loss if the insured person, property, or event were affected.
Insurance is a risk transfer arrangement where an insurer agrees, in return for premium, to pay for specified losses, liabilities, benefits, or services if covered events occur.
Insurance Act 2015 (UK) is UK legislation that modernised commercial insurance law, including duties around fair presentation, warranties, remedies, and fraudulent claims.
Insurance age limit is the minimum or maximum age at which a person can enter, continue, renew, or claim under an insurance policy or benefit plan.
Insurance company is an authorised business that accepts risk from policyholders in return for premium and promises to pay covered claims or benefits.
Insurance contract is the legally binding agreement between an insurer and policyholder setting out premium, coverage, exclusions, limits, conditions, and claim rights.
Insurance policy is the document or set of documents that evidences the insurance contract and explains what is covered, excluded, limited, and required.
Insurance premium is the price paid by the policyholder to the insurer for insurance protection.
Insurance premium tax is a tax charged on insurance premiums in certain jurisdictions, usually collected by insurers or intermediaries and paid to tax authorities.
Insured is the person, organization, property, interest, or risk protected under an insurance policy.
Insured Peril is a specific event or cause of loss that a policy covers, such as fire, theft, storm, flood, accidental damage, or liability arising from negligence.
Insured turnover is the turnover figure used to calculate, rate, or adjust insurance cover, especially in business interruption or liability policies.
Insurer is the authorised company or risk carrier that accepts insurance risk and is responsible for paying covered claims under the policy.
Intangible assets is non-physical assets with economic value, such as intellectual property, goodwill, software, brand value, licences, data, and customer relationships.
Intellectual property rights is legal rights protecting creations of the mind, such as patents, trademarks, copyrights, designs, trade secrets, and proprietary technology.
Intermediary is a person or organization standing between the customer and insurer or provider, such as a broker, agent, adviser, aggregator, or administrator.
International Premium Tax (IPT) is tax charged on insurance premiums by different countries or regions, often requiring careful allocation and compliance in multinational programmes.
International Regulatory and Tax Consulting Practice (IRT) is a specialist advisory practice focused on insurance regulatory, tax, licensing, and compliance issues across countries.
Intestate or intestacy is the situation where a person dies without a valid will, causing their estate to be distributed according to statutory rules rather than personal wishes.
Investment is the commitment of money to an asset, fund, security, business, or product with the aim of generating income, capital growth, or both.
Investment consultant is a professional adviser who helps pension schemes, employers, trustees, or investors design strategy, select managers, monitor performance, and manage investment governance.
Investment fund is a pooled vehicle that invests money from multiple investors according to a stated objective, strategy, and risk profile.
Investment income is money earned from investments, such as interest, dividends, rent, distributions, or realised gains.
Investment manager is a person or firm appointed to manage investments and make decisions within an agreed mandate, objective, and risk framework.
Investment objective is the stated aim of an investment or fund, such as capital growth, income, capital preservation, inflation protection, or balanced return.
Investment performance is the return generated by an investment or portfolio over a period, usually measured after or before fees and compared with a benchmark.
Investment range is the selection of funds, asset classes, or strategies available to members, policyholders, or investors within a product or platform.
Investment return is the gain or loss from an investment over a period, including income and capital movement.
Investment risk is the possibility that investment outcomes differ from expectations, including loss of capital, lower returns, volatility, liquidity constraints, or inflation erosion.
Investment timeframe is the length of time an investor expects to hold an investment before needing the money or measuring the outcome.
Investment trust is a listed company that invests in a portfolio of assets on behalf of shareholders and whose shares trade on a stock exchange.
Investment-linked annuity is an annuity where income is linked partly or wholly to investment performance, so payments may vary rather than remain fixed.
IPD is In-Patient Department or in-patient treatment in health insurance, referring to hospital care that requires admission rather than outpatient consultation only.
Irrecoverable loss is a loss that cannot be recovered from an insurer, reinsurer, debtor, counterparty, salvage process, or other responsible party.
Joint life annuity is an annuity that continues to pay while either of two named people is alive, often used to provide retirement income for a spouse or partner.
Joint life insurance is life insurance covering two people under one policy, usually paying on first death or, in some designs, on second death.
Joint life last survivor is a policy or annuity structure where the relevant benefit continues until the last of two insured lives dies.
Jurisdiction Clause is a policy clause stating which courts or legal jurisdiction will hear disputes arising from the policy or claim.
Key facts document is a concise disclosure document that summarises essential features, risks, costs, benefits, exclusions, and cancellation rights of a financial or insurance product.
Key Person Insurance is insurance purchased by a business to protect against financial loss if a crucial employee, founder, partner, or specialist dies or becomes disabled.
Know Your Client (KYC) is the process of verifying a client’s identity, ownership, source of funds, risk profile, and suitability information before providing financial services or insurance.
Lapse is the termination or loss of policy benefits because required premiums were not paid or conditions for keeping cover in force were not met.
Layered Program is an insurance structure where multiple policies or insurers sit in layers above one another, with each layer responding after lower limits are used.
Legal Defense Cost Coverage (Germany) is coverage for legal defense costs, often relevant in German D&O and liability programmes where defense cost treatment may be influenced by local law and policy wording.
Legal Expenses Insurance is insurance that covers eligible legal costs, such as advice, representation, court fees, or pursuit and defense of specified disputes.
Legal liability is responsibility imposed by law to pay compensation, damages, defense costs, fines where insurable, or other remedies to another party.
Legal Representative is a person authorised to act on behalf of another in legal, estate, claim, or insurance matters, such as an executor, administrator, guardian, or attorney.
Level annuity is an annuity that pays the same regular income amount throughout the payment period, without scheduled increases for inflation.
Level premium is a premium designed to stay the same for a defined period or the life of the policy, rather than increasing with age each year.
Life expectancy is the average number of years a person is expected to live based on age, health, mortality data, and demographic assumptions.
Life fund is a fund maintained by a life insurer to back life assurance, annuity, pension, or investment-linked policy liabilities.
Life of another is a life insurance arrangement where the policyholder insures another person’s life, usually requiring insurable interest and consent.
Lifetime allowance is a limit used in some pension tax systems to measure the total tax-advantaged pension benefits an individual can build up, depending on current law.
Liquidation is the process of winding up a company, selling assets, paying creditors in order of priority, and distributing any remaining value to shareholders.
Listed investments is investments traded on a recognised exchange, such as listed shares, listed bonds, exchange-traded funds, or listed investment trusts.
Litigation Funding (Legal Financing) is third-party financing of legal claims or defense costs in return for a fee, share of proceeds, or agreed return if the case succeeds.
Lloyd's of London is the specialist insurance and reinsurance marketplace in London where syndicates underwrite complex risks through brokers, backed by the Lloyd’s market structure.
Lloyds of London is a common non-apostrophe spelling used to refer to Lloyd’s of London, the specialist insurance and reinsurance marketplace for complex risks.
Loading is an additional premium added to reflect higher risk, adverse claims history, medical conditions, hazardous occupations, or other underwriting factors.
Loss is financial harm, damage, liability, expense, injury, or reduction in value that may lead to an insurance claim or business cost.
Loss adjuster is an independent or insurer-appointed specialist who investigates a claim, assesses coverage and quantum, and helps recommend settlement.
Loss assessor is a claims specialist appointed by the policyholder to prepare, present, and negotiate a claim with the insurer or loss adjuster.
Loss Ratio is claims incurred divided by earned premium over a period, used to assess the profitability and risk experience of an insurance portfolio.
Managed fund is a pooled investment fund run by a professional manager according to a stated strategy, risk profile, and objective.
Manager is a person or organization responsible for managing a fund, scheme, team, process, account, insurer relationship, or benefit arrangement.
Managing General Agent (MGA) is an intermediary with delegated authority from insurers to underwrite, bind, price, service, and sometimes handle claims for specific classes of business.
Managing General Underwriter (MGU) is a specialist underwriting intermediary with delegated authority to underwrite and manage insurance programmes on behalf of insurers or reinsurers.
Market value is the amount an asset, investment, property, or security could reasonably be sold for in the market at a particular time.
Market value adjustment is an adjustment applied when money is withdrawn, transferred, or surrendered from certain investment or with-profits products to reflect underlying market conditions.
Market value excess of investments is the amount by which the market value of investments exceeds their book value, liabilities, or a reference value used in solvency or accounting calculations.
Marsh Alpha™ is a Marsh-branded Side A Difference in Conditions product designed to protect directors and officers when the company cannot or will not indemnify them and where underlying D&O cover is unavailable, exhausted, rescinded, or otherwise insufficient.
Marsh Cyber Echo™ is a Marsh-branded excess cyber insurance facility that provides cyber and technology risk capacity, designed to help clients access additional limits and reinstatement features above underlying cyber programmes.
Marsh Delta™ is a Marsh-branded D&O liability solution for eligible private, publicly traded, and private-equity-owned clients, designed to provide broad management liability protection through a structured placement approach.
Marsh Financial Lines Echo™ is a Marsh-branded excess D&O coverage solution, often referred to through D&O Echo, that provides additional management liability capacity above an underlying D&O tower.
Marsh Global Insight is a Marsh online platform that helps multinational clients access insurance, regulatory, tax, and country intelligence for global program planning and compliance questions.
Material damage is physical damage to tangible property, such as buildings, machinery, stock, or equipment, that may trigger property insurance and related business interruption cover.
Material Damage Warranty is a business interruption policy warranty requiring that material damage insurance is in force, often because business interruption cover depends on insured physical damage.
Material fact is information that would influence a prudent insurer’s decision to accept a risk, set terms, charge premium, or impose conditions.
Material Fact or Circumstance is a fact, circumstance, or representation important enough to influence underwriting, pricing, coverage, or claim decisions.
Maternity add-on is an optional health insurance benefit that adds maternity-related cover, often subject to waiting periods, sub-limits, and eligibility rules.
Maternity cover is health insurance cover for eligible pregnancy, delivery, pre-natal, post-natal, or newborn expenses, subject to policy limits and waiting periods.
Maturity is the date when a policy, bond, investment, loan, or benefit reaches the end of its term and becomes payable or due for renewal.
MBIE is New Zealand’s Ministry of Business, Innovation and Employment, a government agency involved in business, employment, consumer, building, immigration, and market regulation policy.
Mechanical Breakdown is failure of machinery, equipment, or vehicle components due to internal defect, electrical failure, or mechanical malfunction rather than external accidental damage.
Medical Expenses Insurance is insurance that reimburses or pays eligible medical costs such as hospitalization, surgery, consultations, medicines, diagnostics, and emergency treatment.
Member is a person who belongs to a pension scheme, employee benefit plan, mutual, fund, insurance program, or group policy.
Member contribution is the amount paid by a member or employee into a pension, superannuation, health plan, or other benefit arrangement.
Member's account is the individual account within a pension, savings, or benefit scheme that records a member’s contributions, employer contributions, investment returns, fees, and withdrawals.
Moratorium is a temporary suspension, waiting period, or restriction, often used in medical underwriting to exclude pre-existing conditions for a set period unless conditions are met.
Morrison v.
Mortality rate is the rate at which deaths occur in a population over a period, used in pricing life insurance, annuities, pensions, and employee benefits.
Motor insurance anti-fraud and theft database is a shared database used by motor insurers and authorities to detect fraud, identify stolen vehicles, and improve underwriting or claims checks.
Multinational Client Services (MCS) is specialist services that coordinate insurance placements, compliance, local policy issuance, premium allocation, and claims for multinational clients.
Multinational Management Liability Report is a report or information tool that helps multinational companies understand management liability exposures, insurance structures, and local D&O considerations across jurisdictions.
Mutual is an organization owned by its members or policyholders rather than external shareholders, often operating for member benefit.
Named ailments is specific illnesses, treatments, or medical conditions listed in a health policy as covered, restricted, subject to waiting periods, or excluded.
National brokers is insurance brokers operating primarily within one country, often with strong local market relationships and regulatory knowledge.
National Insurance contributions is UK social security contributions paid by employees, employers, and self-employed people to fund state benefits and pensions.
Negligence is failure to take reasonable care, resulting in damage, injury, or loss to another person or organization.
Net is an amount after deductions, such as tax, expenses, commission, reinsurance, fees, or other adjustments.
Network hospital is a hospital that has an agreement with an insurer or third-party administrator to provide covered services, often enabling cashless treatment.
Network provider is a healthcare provider, clinic, hospital, or service organization contracted with an insurer or benefit plan to deliver services at agreed rates or terms.
New for old is a replacement basis where damaged or stolen property is replaced with new equivalent property without deduction for depreciation, subject to policy terms.
Newborn cover is health insurance cover for a newborn child, often available from birth or after a stated period and subject to enrollment rules, limits, and exclusions.
No claim bonus is a reward for not making claims during a policy period, often given as a discount, additional sum insured, or enhanced benefit at renewal.
No claims discount is a premium discount earned by policyholders who do not make claims over a defined period.
Non-disclosure is failure to provide material information that should have been disclosed to an insurer, adviser, or provider before cover or a claim decision.
Non-Network Hospital is a hospital that does not have a cashless or direct settlement agreement with the insurer or third-party administrator.
Non-network provider is a healthcare provider outside the insurer’s contracted network, often requiring reimbursement claims and sometimes attracting lower benefits or higher member costs.
Nonadmitted Insurance is insurance placed with an insurer that is not licensed in the country where the risk is located, which may create tax, regulatory, and claims payment issues.
Occupational pension scheme is a pension scheme established by an employer for employees, usually linked to employment and governed by scheme rules and trustees or managers.
Occurrence Wordings is policy wordings that respond based on when the insured event occurs, rather than when the claim is made or reported.
Offer price is the price at which investors can buy units, shares, or interests in a fund or investment product.
OPD is Out-Patient Department treatment, meaning medical consultation or care that does not require hospital admission.
OPD cover is health insurance cover for outpatient expenses such as doctor consultations, diagnostics, medicines, dental, vision, or physiotherapy, depending on plan design.
Opting out is choosing not to participate in an automatic or default arrangement, such as a pension scheme, benefit plan, or certain insurance cover.
Over-insured is having more insurance cover than the actual value at risk or more than the policyholder could recover under the principle of indemnity.
Participation agreement is an agreement setting out how a party participates in an insurance program, captive, benefit scheme, investment, or reinsurance arrangement.
Passive management is an investment approach that aims to track a market index or benchmark rather than actively selecting securities to beat it.
Passporting is the ability of an authorised financial services firm in one EEA state to provide services or establish branches in another EEA state under EU single-market rules, before Brexit changes for UK firms.
PAYE is Pay As You Earn, a payroll withholding system where income tax and sometimes social security contributions are deducted from wages before employees are paid.
PDS Supplement is a supplementary document that updates, corrects, or adds information to a Product Disclosure Statement without replacing the entire disclosure package.
Pecuniary loss is financial or monetary loss, as distinct from physical injury or property damage.
PED and PED cover is Pre-Existing Disease cover in health insurance, referring to coverage for medical conditions that existed before policy inception after any waiting period or underwriting terms.
Pension is a retirement income or savings arrangement designed to provide benefits after a person stops working or reaches a selected retirement age.
Pension benefits is the retirement payments, lump sums, death benefits, spouse benefits, or other entitlements provided under a pension scheme.
Per-Risk Excess of Loss Treaty is reinsurance that protects the insurer for losses above a retention on each individual risk, rather than on an event or whole portfolio aggregate basis.
Peril is a cause of loss, such as fire, theft, flood, earthquake, accident, negligence, cyberattack, or illness, depending on the policy.
Permanent Health Insurance is long-term income protection insurance that pays a regular benefit if the insured cannot work because of illness or injury, often until recovery, retirement, or policy end.
Personal accident is insurance that pays benefits for accidental death, disability, dismemberment, or injury, often through individual or group employee benefit plans.
Personal Data is information relating to an identified or identifiable person, such as name, contact details, health data, payroll records, identifiers, or online behavior.
Personal lines is insurance designed for individuals and households, such as motor, home, travel, personal accident, or individual health cover.
Personal money is cash, banknotes, coins, or similar personal funds covered under some personal, travel, or contents policies while in specified locations or circumstances.
Phased retirement is a retirement approach where a person gradually reduces work or draws benefits in stages rather than moving from full-time work to full retirement at once.
Plan is a structured arrangement for insurance, employee benefits, healthcare, retirement, savings, or risk management, setting out eligibility, benefits, funding, and administration.
Policy is the written insurance contract or benefit document that sets out coverage, exclusions, limits, conditions, premium, parties, and the policy period.
Policy holder is the person or entity that owns the insurance policy and has contractual rights and obligations, such as paying premium and making changes.
Policy schedule is the policy document section that lists the specific details of cover, including insured name, period, limits, deductibles, premium, endorsements, and insured property or persons.
Pool re is Pool Re, the UK terrorism reinsurance scheme that supports insurers writing terrorism cover for commercial property and related risks.
Portability is the ability to continue, transfer, or convert insurance or benefits when employment, location, insurer, or scheme membership changes.
Portfolio investment entity (PIE) is a New Zealand investment entity tax structure that attributes income and tax to investors at prescribed investor rates.
Post hospitalization is medical expenses incurred after discharge from hospital that relate to the same illness, injury, or treatment episode and are covered for a specified period.
Post natal is care, treatment, or benefits relating to the mother or newborn after childbirth.
Post-hospitalization coverage is health insurance coverage for eligible follow-up expenses after hospital discharge, such as consultations, medicines, diagnostics, or rehabilitation, within a defined timeframe.
Pre existing disease is a medical condition, illness, injury, or symptom that existed before a health insurance policy began, whether or not it had been formally diagnosed.
Pre hospitalization is medical expenses incurred before hospital admission that relate to the same illness, injury, or treatment and are covered for a defined period.
Pre Natal is care, treatment, or benefits relating to pregnancy before childbirth, such as consultations, scans, tests, and medical monitoring.
Pre-existing medical condition is a health condition, illness, injury, symptom, or diagnosis that existed before the insurance policy or benefit cover started.
Pre-hospitalization coverage is health insurance coverage for eligible medical expenses incurred before admission to hospital for the same covered condition.
Premium is the amount paid to an insurer for insurance cover, usually calculated using the type of risk, limits, deductibles, claims history, exposure, and policy period.
Premium loading is an additional premium charged because underwriting factors indicate higher risk than standard pricing allows.
Prescribed investor rate (PIR) is a New Zealand tax rate used to calculate tax on income attributed to investors in portfolio investment entities.
Presumptive Indemnification is an assumption in some D&O insurance structures that the company will indemnify directors or officers where legally permissible, affecting whether Side A or Side B cover responds.
Preventive checkups is health screening services intended to detect illness early or monitor wellbeing, such as annual health checks, blood tests, or diagnostic packages.
Pro-rata refund is a refund calculated proportionately for the unused part of a policy period after cancellation, adjustment, or reduction in cover.
Product disclosure statement (PDS) is a document that explains the key features, risks, benefits, fees, and terms of a financial or insurance product so customers can make informed decisions.
Product liability policy is insurance that covers legal liability arising from injury, damage, or loss caused by products a business manufactures, sells, distributes, or supplies.
Profit and loss account is a financial statement summarising income, expenses, and profit or loss over a period.
Property is physical assets such as buildings, contents, stock, machinery, equipment, money, or other tangible items that may be insured against loss or damage.
Proportionate clause is a clause that reduces claim payment proportionately when the insured value, declared value, or limit is lower than the required value.
Proportionate deduction is a reduction applied to a claim in proportion to underinsurance, non-covered items, co-insurance, or other policy conditions.
Proposal form is an application document used to collect information about the person, business, property, activity, or risk proposed for insurance.
Proposer is the person or organization applying for insurance and providing the information on which the insurer bases underwriting terms.
Proximate Cause is the dominant, effective cause of a loss that determines whether the loss falls within covered perils or excluded causes.
Public Liability is insurance covering legal liability for injury or property damage suffered by third parties in connection with the insured’s business or activities.
Purchased life annuity is an annuity bought with personal funds rather than directly from pension savings, providing regular income for life or a set period.
Quote is an indication of premium, terms, limits, deductibles, and conditions offered by an insurer for proposed insurance cover.
Quote Summary is a concise comparison or summary of quoted insurance terms, often showing insurers, premiums, limits, deductibles, key exclusions, and recommendation notes.
Rate is the pricing factor applied to an exposure base, such as payroll, turnover, sum insured, employee count, or vehicle value, to calculate premium.
Reasonable and customary charges is the level of medical charges considered normal for a service in a location, used by insurers to decide eligible reimbursement.
Rebalancing is adjusting a portfolio back toward its target asset allocation after market movements or cash flows have changed the actual mix.
Rebuild value is the estimated cost of rebuilding insured property from scratch, including materials, labor, professional fees, debris removal, and compliance costs.
Regular premium is premium paid at repeated intervals, such as monthly, quarterly, or annually, rather than as a single lump sum.
Regulatory capital requirement is the minimum amount and quality of capital an insurer or financial institution must hold under regulatory rules to support its risks.
Reimbursement is payment back to the insured for eligible expenses already paid, after the claim is approved and required documents are submitted.
Reinstatement is restoring cover, a policy, a sum insured, or a limit after it has lapsed, been cancelled, or been reduced by a claim.
Reinstatement of Limit is the restoration of an insurance limit after a claim has eroded it, sometimes automatic and sometimes subject to additional premium.
Reinstatement Value is the cost of replacing, rebuilding, or repairing damaged property to a condition equivalent to its pre-loss state, without deduction for depreciation where the policy allows.
Reinsurance is insurance purchased by an insurer to transfer part of the risk it has accepted from policyholders to another insurer or reinsurer.
Renewal notice is a notice sent before policy expiry showing renewal terms, premium, changes, and actions required to continue cover.
Reserves is amounts set aside by an insurer, pension scheme, or business to meet future claims, benefits, liabilities, or obligations.
Responsible party is the person or organization legally or contractually accountable for an obligation, loss, claim, task, compliance duty, or payment.
Retroactive Date is the date before which acts, errors, omissions, or events are not covered under a claims-made policy.
Retrocession is reinsurance purchased by a reinsurer to transfer part of the risk it has assumed to another reinsurer.
Return is the gain or loss on an investment, policy fund, or portfolio over a period, including income and capital movement.
Rider is an optional add-on or amendment to an insurance policy that provides additional benefits or changes cover for extra premium or specific conditions.
Risk is the possibility that an uncertain event or condition will cause loss, injury, liability, cost, or deviation from expected outcomes.
Risk indicator is a measure or score used to show the level of risk in an investment, policy, claim, employer group, or underwriting profile.
Risk Management is the process of identifying, assessing, controlling, financing, and monitoring risks that could affect an organization or individual.
Risk profile is a summary of the nature, size, probability, and impact of risks faced by a person, company, portfolio, or insurance program.
Roaming Executive is a senior employee who travels or works across multiple countries and may need coordinated health, accident, travel, liability, or benefits protection.
Room rent limit is a cap in a health insurance policy on the daily room charge payable during hospitalization.
Rules of the Road is an agreed set of operating principles that tells a client, broker, insurer, and local service teams how a complex insurance program will be placed, serviced, documented, and escalated.
Run Off Cover is insurance that covers claims made after a business, practice, director role, or policy period has ended for acts that occurred before termination.
Salvage is damaged property recovered after a loss that still has value, or the value an insurer may realise after settling a claim.
Schedule is the section of a policy, contract, or scheme document that lists the specific details applying to the insured, cover, period, limits, and endorsements.
Scheme is a structured arrangement, usually governed by rules, for providing insurance, pensions, employee benefits, investments, or pooled risk sharing.
Selected pension age is the age chosen by a pension member as the target age for taking benefits or retirement planning projections.
Self-invested personal pension is a UK personal pension that gives the member wider control over investment choices than a standard personal pension.
Senior Management Regime (SMR) is a UK regulatory framework assigning clear accountability to senior managers in financial services firms.
Severe Convective Storms is damaging thunderstorm-related weather events such as hail, tornadoes, straight-line winds, lightning, and heavy rain.
Shadow Director is a person who is not formally appointed as a director but whose instructions or wishes the company’s directors are accustomed to follow.
Shares is units of ownership in a company that may give investors rights to dividends, voting, and capital growth or loss.
Side A Difference-in-Conditions (DIC) Coverage is D&O insurance that protects individual directors and officers when the company cannot indemnify them and underlying insurance is unavailable, insufficient, or fails to respond.
Side-A D&O Claim is a claim against directors or officers where the company cannot legally or financially indemnify them, so Side A D&O cover is intended to protect their personal assets.
Side-B D&O Claim is a claim where the company indemnifies directors or officers and then seeks reimbursement from the D&O insurer under Side B cover.
Side-C D&O Claim is a claim against the company itself, often securities-related for public companies, covered under the entity coverage part of a D&O policy.
Sidecar is a capital market or reinsurance vehicle that takes a defined share of an insurer’s or reinsurer’s risk portfolio, usually for a limited period.
Single-life annuity is an annuity that pays income for one person’s lifetime and normally stops when that person dies unless guarantees or protection options apply.
Sister Company Endorsement or Extension is a policy extension that treats related or sister companies as covered entities or provides protection for transactions between affiliated companies, subject to wording.
Social Inflation is the trend of insurance claims costs rising faster than general inflation because of litigation trends, larger awards, broader liability theories, or changing social attitudes.
Solvency II is the European risk-based regulatory framework for insurers, covering capital requirements, governance, risk management, reporting, and supervision.
Solvency ratio is a measure comparing an insurer’s eligible capital with its regulatory capital requirement, used to assess financial strength and resilience.
Special Litigation Committee (SLC) is a committee of independent directors appointed to evaluate whether a company should pursue or dismiss derivative litigation.
Stakeholder pension is a UK pension product designed with minimum standards on charges, contributions, and accessibility.
Standalone Local Policy is a policy issued in a local country independently of, or alongside, a global master policy to meet local insurance needs or legal requirements.
State earnings-related pension scheme is a former UK additional state pension arrangement linked to earnings, often abbreviated as SERPS.
State pension is a government-provided pension paid to eligible people who meet age and contribution or residency requirements.
State pension age is the age at which a person becomes eligible to claim the state pension, subject to jurisdiction-specific rules.
State second pension is a former UK additional state pension that replaced SERPS and was later replaced by the new State Pension system.
Statement of fact is a document recording information supplied or assumed for insurance underwriting, often replacing or supplementing a proposal form.
Statement of investment policy and objectives (SIPO) is a document setting out a scheme’s investment objectives, strategy, policies, risk approach, and governance requirements.
Statutory Deductible Requirement for D&O (Germany) is a German legal requirement that certain management board members of stock corporations retain a personal deductible under D&O insurance.
Statutory money purchase illustration is a standardised projection showing what a defined contribution pension might provide at retirement based on assumptions and regulatory methodology.
Stocks is shares or equity securities representing ownership in companies, or in some markets a broader term for traded securities.
Strategic asset allocation is the long-term target mix of asset classes chosen to meet investment objectives and risk tolerance.
Sub limit is a lower limit within an insurance policy that caps payment for a specific coverage, peril, location, person, or expense category.
Sub-limit is a lower limit within an insurance policy that caps payment for a specific coverage, peril, location, person, or expense category.
Subject to survey is a condition stating that insurance terms or cover are dependent on the results of a survey, inspection, or risk assessment.
Subrogation is the insurer’s right, after paying a claim, to step into the insured’s position and recover from a responsible third party.
Subsidence claim is a claim for damage caused by downward movement of ground supporting a building, often due to soil shrinkage, mining, water escape, or foundation issues.
Sum insured is the maximum amount selected to insure property, benefits, or a financial interest, subject to policy terms and sub-limits.
Super top up health insurance is a health insurance plan that provides additional cover above a deductible or threshold, often used to supplement a base group medical policy.
Superannuation scheme is a retirement savings scheme, often employer-related or tax-recognised, designed to accumulate money for retirement benefits.
Supervisory Board is a governance body that oversees the management board, common in two-tier board systems in several European jurisdictions.
Surety is a guarantee arrangement where one party promises to answer for another party’s debt, default, or performance obligation.
Surety bond is a three-party bond where a surety guarantees that a principal will perform an obligation to an obligee or compensate the obligee if the principal defaults.
Swing pricing is an investment fund pricing mechanism that adjusts the fund price to protect existing investors from transaction costs caused by large inflows or outflows.
Tactical asset allocation is shorter-term adjustments to asset allocation intended to take advantage of market opportunities or manage near-term risks while staying within strategic limits.
Tangible asset is a physical asset such as buildings, machinery, inventory, vehicles, equipment, or cash.
Target investment mix is the intended allocation of a portfolio across asset classes, used as a guide for investment management and rebalancing.
Tax is a compulsory financial charge imposed by government on income, profits, premiums, transactions, property, or consumption.
Tax relief is a reduction in tax liability or taxable income, often provided for qualifying pension contributions, insurance premiums, investments, or business expenses.
Tax True-Up Endorsement is an endorsement designed to adjust for tax differences so a claim payment or indemnity more closely reflects the intended economic recovery after taxes.
Tax-free lump sum is a pension or retirement benefit amount that can be taken as a lump sum without income tax, subject to jurisdiction-specific limits and rules.
Teleconsultation is a medical consultation delivered remotely by phone, video, or digital platform, often included in modern employee health benefits and insurance plans.
Telematics-based motor insurance is motor insurance priced or managed using driving data collected from devices, mobile apps, or connected vehicles.
Temporary claim is a claim for a temporary loss, disability, or interruption where the insured is expected to recover or return to normal operations.
Terminal bonus is an additional bonus that may be added at maturity, surrender, or death under some with-profits policies, depending on fund performance and provider discretion.
Territorial Limits is the geographic area in which the policy applies or within which insured events must occur to be covered.
Third party is a person or organization other than the insured and insurer that may suffer injury, damage, loss, or have rights under a claim.
Third party administrator is an external organization appointed to administer claims, benefits, provider networks, enrollment, or policy servicing on behalf of an insurer or employer.
Third party liability is legal responsibility for injury, damage, or loss suffered by someone outside the insurance contract.
Tied agent is an agent who represents one insurer or provider, or a limited panel, rather than advising across the whole market.
Total and permanent disablement is a disability benefit trigger where the insured is permanently unable to work or perform specified activities, according to the policy definition.
Total but temporary disablement is a disability state where the insured is completely unable to work for a period but is expected to recover.
Total permanent disability is a benefit that pays when the insured becomes permanently disabled and meets the policy’s definition of inability to work or function.
Tower is the stack of insurance policies, limits, and layers that together form a program, especially in D&O, cyber, casualty, and excess liability insurance.
Trading result is the profit or loss from business operations, underwriting, or trading activity over a period.
Treasury bill is a short-term government debt security issued at a discount and redeemed at face value, commonly treated as a low-risk cash or money market instrument.
Treaty Renewals is the periodic renegotiation and renewal of reinsurance treaties, including pricing, terms, limits, retentions, and capacity.
Trust deed is the legal document establishing a trust and setting out the powers, duties, rights, and rules governing trustees and beneficiaries.
Trustee is a person or organization legally responsible for holding and managing assets for beneficiaries under a trust or scheme rules.
Underinsurance is the situation where the sum insured or limit is lower than the actual value or exposure, leading to reduced claim recovery or uncovered loss.
Underlying Insurance is the primary or lower-layer insurance that sits beneath an excess, umbrella, DIC, or reinsurance layer.
Underlying investment managers is the fund managers appointed within a broader product, platform, fund-of-funds, or pension arrangement to manage specific investment mandates.
Underpinning is structural work to strengthen or stabilise a building’s foundations, often relevant to subsidence claims and property underwriting.
Underwriter is the person or insurer function that assesses risk, sets terms, prices premium, decides acceptance, and applies conditions or exclusions.
Underwriting is the process of evaluating risk and deciding whether to insure it, on what terms, at what price, and with what limits or conditions.
Uninsurable risk is a risk that insurers will not cover because it is too certain, catastrophic, illegal, unquantifiable, against public policy, or outside market appetite.
Unit price is the price of one unit in an investment fund, policy fund, or unit trust, used to calculate the value of holdings and transactions.
Unit trust is a pooled investment structure divided into units, where investors’ money is managed collectively according to a trust deed and investment objective.
Unit-linked annuity is an annuity linked to investment units, meaning income can vary with the value of underlying funds.
Unitised with-profit is a with-profits investment structure where policy values are expressed in units while returns are smoothed through bonuses.
Units is standard portions of ownership in a fund or investment product, used to calculate each investor’s share of the total value.
Unlisted investments is investments not traded on a recognised public exchange, such as private equity, private debt, direct property, or unquoted company shares.
Utmost good faith is the traditional insurance principle requiring both parties, especially the insured before placement, to act honestly and disclose material information.
Valuables is high-value personal or business items such as jewellery, watches, art, antiques, instruments, or collectibles that may need specific insurance limits or listing.
Void is treated as having no legal effect.
Volatility is the degree to which an investment, market, claim cost, or financial result moves up and down over time.
Voluntary excess is an additional excess chosen by the policyholder, usually in return for a lower premium, on top of any compulsory excess.
Waiting period is a period that must pass before a benefit becomes payable or a condition becomes covered under an insurance or employee benefit plan.
Waiver is the voluntary giving up of a right, requirement, premium, condition, or claim by a party entitled to enforce it.
Warranty is a policy term or promise that certain facts are true or certain actions will be done, and breach may affect coverage depending on law and wording.
Wear and tear is gradual deterioration from normal use, age, friction, weathering, or ordinary operation, commonly excluded from insurance.
Weather claim is a claim arising from weather-related events such as storm, flood, hail, lightning, heavy rain, snow, wind, or extreme temperature.
With-profits annuity is an annuity where income can be influenced by the performance and bonuses of a with-profits fund.
With-profits policy is a life or savings policy that shares in the profits of a life fund through bonuses, often using smoothing to reduce market volatility.
Wrap Policy is a policy or program designed to sit around other policies, filling gaps or providing overarching terms, limits, or compliance support.
Write-off or written loss is a loss where the damaged asset is considered uneconomical to repair, so the insurer settles on a total loss basis subject to policy terms.