Reference
Insurance glossary
21 terms · 461 stories mentioning them
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Annuity
An annuity is an insurance contract that pays out a stream of income, often for life, in exchange for a lump sum or series of premiums paid in.
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Bancassurance
Bancassurance is the sale of insurance products through a bank's branches, staff and digital channels, rather than through independent agents.
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Captive insurance
Captive insurance is an insurer that a company or group creates to insure its own risks, rather than buying coverage from an outside carrier.
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Crop insurance
Crop insurance pays farmers when a harvest's yield or revenue falls short, covering losses from drought, flood, pests or price swings.
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Excess and surplus lines
Excess and surplus lines insurance covers risks a standard insurer won't write, sold through carriers not licensed in that state.
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Insurance broker
An insurance broker arranges coverage for a policyholder, shopping terms across insurers rather than representing just one carrier.
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Insurance fraud
Insurance fraud is any deliberate deception used to obtain a payout or coverage from an insurer that the claimant is not entitled to.
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Insurance-linked securities
Insurance-linked securities are securities whose payouts are tied to insurance losses, shifting catastrophe and other risk from insurers to investors.
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Marine insurance
Marine insurance covers physical loss or damage to ships and cargo, and the liabilities that arise while goods move by sea.
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MGA
A managing general agent, or MGA, is a specialist firm an insurer authorizes to underwrite and bind policies on its behalf.
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Microinsurance
Microinsurance is insurance scaled down in premium and payout size for people with low, irregular incomes who conventional coverage overlooks.
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Parametric insurance
Parametric insurance pays a fixed sum when a measurable event, such as a quake or storm, crosses an agreed threshold.
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Premium finance
Premium finance is a loan that lets a policyholder pay an annual premium in installments instead of one lump sum.
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Professional indemnity insurance
Professional indemnity insurance covers a business or individual against claims of financial loss caused by their professional advice, services or errors.
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Protection gap
The protection gap is the difference between economic losses that occur and the amount actually covered by insurance.
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Reinsurance
Reinsurance is insurance that insurers buy to shift part of the risk they have underwritten onto another carrier, for a share of the premium.
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Surety bond
A surety bond is a three-party contract where a surety guarantees a party will meet an obligation, paying out if they fail to.
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Takaful
Takaful is an Islamic form of cooperative insurance, where participants pool contributions into a shared fund to cover one another's losses.
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Telematics insurance
Telematics insurance is motor coverage priced from data collected on how, when and how far a vehicle is actually driven.
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Trade credit insurance
Trade credit insurance pays a supplier or lender when a business customer fails to pay an invoice or loan because of default or insolvency.
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Workers' compensation insurance
Workers' compensation insurance pays medical costs and lost wages for employees hurt on the job, regardless of who was at fault.