Available terms:
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Description:
Actuarial report
A written report provided by the actuary on one or more aspects of the company's operations (for example, the company's calculation of premiums and/or technical provisions etc).
Actuary
An actuary is a professional trained in evaluating the financial implications of contingency events. Actuaries require an understanding of the stochastic nature of insurance and other financial services, the risks inherent in assets and the use of statistical models. In the context of insurance, these skills are, for example, often used in establishing premiums, technical provisions and capital levels.
Aggregate excess of loss reinsurance (Stop-loss)
This method of reinsurance provides reinsurer indemnification to the ceding company for the aggregate amount of losses during a specific time frame up to a predetermined limit or percentage. For these situations, the ceding company will be expected to provide documentation to the reinsurer of the premiums collected and the losses sustained.
Alternative risk transfer (ART)
Any form of risk transfer that includes at least an element of insurance risk, rather than purely financial risk. Possible features of ART include, but are not restricted to:
• Tailor-made solutions
• Multi-year policies
• Often the coverage of risks that the conventional market would regard as uninsurable
• Often the inclusion of some form of risk transfer of non-insurance risk
The definition of ART includes, but is not restricted to, finite reinsurance and securitisation of insurance risks. [Related definitions: Reinsurance]
Asset-liability management (ALM)
The practice of managing an insurer so that decisions and actions taken with respect to assets and liabilities are coordinated through the ongoing process of formulating, implementing, monitoring and revising strategies related to assets and liabilities to achieve an insurer's financial objectives, given its risk tolerances and other constraints
Auditor's reportWritten opinion expressed by the auditor on his/her examination of the company's general purpose financial reports.
Automatic life reinsurance
Similar to non-life "treaty" reinsurance. In automatic reinsurance, the ceding company is able to bind the reinsurer on a risk without submitting an application for reinsurance provided certain conditions are met. These conditions vary by agreement, but typically obligate the ceding company to keep retention on the life, limit the amount of insurance on a life that may be ceded, and limit the overall amount of insurance that may be in force on the life issued by all life insurers. The ceding company may be required to notify the reinsurer of automatic reinsurance arrangements through specific cessions (i.e., "cession reporting"), otherwise it is called "bordereau reporting." This type of reinsurance will be typically offered to broad segments of a insurer's business, such as all issues of a specified policy form.
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