Glossary
P
policy benefits for life and health contracts
Value arrived at using mathematical methods for future liabilities (present value of future liabilities minus present value of future incoming premiums), primarily in life, health and personal accident insurance.
portfolio
The risks assumed by a primary insurer or reinsurer as totality or in a defined
segment (e.g. line of business, country).
premiums
Agreed compensation for the risks assumed by the policyholder. Unlike earned premiums, written premiums are not booked on an accrual basis.
primary insurer
Company that assumes risks in return for an insurance premium and maintains a direct contractual relationship with the policyholder (private individual, corporation, organization).
professional reinsurer
Insurance enterprises that engage exclusively in reinsurance.
program business
Originally a specialty of the US insurance market, program business is written by insurers working in very close cooperation with reinsurers and highly specialized managing general agents. The segment is typically focused on niche and non-standard coverages and hard-to-place risks. It is now written on other markets too.
property and casualty insurance
All major lines of insurance except for life insurance and health insurance.
proportional reinsurance
Reinsurance treaties on the basis of which shares in a risk or portfolio are reinsured
under the prevailing original conditions. Premiums and losses are shared proportionately on a pro-rata basis. This is in contrast to non-proportional reinsurance.
provision
Liability item shown as at the balance sheet date to discharge obligations which exist
but whose extent and/or due date is/are not known. Technical provisions, for example, are for claims which have already occurred but which not yet been settled or have only been partially settled (loss and loss adjustment expense reserve, abbreviated to: loss reserve).
provision for unearned premiums (also: unearned premium reserve)
Premiums written in a financial year which are to be allocated to the following period on an accrual basis. This item is used to defer written premiums.
purchase cost, amortized
Cost of acquiring an asset item including all ancillary and incidental purchasing costs; in the case of wasting assets less scheduled and/or special amortization.
