Description:
Economic capital
The capital needed by the insurer to satisfy its risk tolerance and support its business plans and which is determined from an economic assessment of the insurer's risks, the relationship between them and the risk mitigation in place.
Effect horizon
The period over which the shock that is applied to a risk will impact the insurer. [Related definition: Shock period]
Enterprise Risk Management (ERM)
The process and activities of identifying, assessing, measuring, monitoring, controlling and mitigating risks in respect of the insurer's enterprise as a whole.
Excess per risk reinsurance
This reinsurance method provides indemnification to the ceding company for each covered risk up to a predetermined limit. The ceding company is required to meet the obligations of the claim up to a preset dollar amount before the reinsurer becomes liable.
Expense ratio
The ratio of expenses to earned premiums.
|
