Insurance Terms

Mon, May 25th 2009, 16:31

Any risk can be insured provided that it can be quantified and there is someone who is prepared to accept responsibility for that risk.


Insurance Terms

Any risk can be insured provided that it can be quantified and there is someone who is prepared to accept responsibility for that risk.

The Insurance Industry provides a huge range of insurance products to those seeking to minimise the risks they are exposed to. The insured will pay a premium for this service.

The Insurance Industry is a huge industry worldwide. According to the IMF, insurance premiums make up 7.48% of global GDP.

 

Actuarial Science
The scientific process by which a risk is analyzed and quantified

Adjustor/Assessor
An independent qualified person who assesses the size or value of a loss on behalf of the insurer

Insurance Policy
A contract of insurance between an insurer and the insured: it states which perils are covered by the policy, and the terms by which the insured will be restored to their original financial position in the event that such a peril should occur

Insured
An individual or group whose stated risk has been assumed by another party (the insurer)

Insurer
A company that provides insurance products which accept responsibility for a stated risk in exchange for payment of a premium

Premium
The amount payable for a particular insurance cover

Reinsurance
The practice where a party undertakes to indemnify an insurer for all or part of the liability owed in terms of an original insurance contract

Risk
The possibility of loss

Risk Management
The identification, analysis and prioritisation of risk and the application of resources to minimise the impact of these risks

Underwriting
The process by which an insurer accepts liability for a risk in exchange for payment of a specified premium

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