Glossary of Reinsurance Terms

This paper presents a dictionary of 190 words related to the insurance sector. The alphabet is hyper-linked with the International Cooperative and Mutual Insurance Federation (ICMIF) web page. A word list follows the definitions of each word. For example:

• Annual Aggregate Deductible is defined as a provision in some non-proportional reinsurance contracts stipulating that the reinsured will retain, in addition to its retention per risk or per occurrence, an annual aggregate amount that would otherwise be recoverable from the reinsurer. The annual aggregate deductible is usually expressed as an amount or a percentage of the reinsured's subject premium for the period;
• London Market signifies the international insurance and reinsurance business written in London, consisting of:
  • 1. International reinsurance;
  • 2. Marine and aviation;
  • 3. US excess and surplus lines business;
  • 4. Direct overseas business written in the UK (home foreign).
• Reinsurance denotes the practice whereby one party, the reinsurer, in consideration of premium paid, agrees to indemnify another party, the reinsured, for part or all of the liability assumed by the reinsured under a policy (or policies) of insurance;
• Treaty means in the legal sense: a contract between two or more nations (e.g. "Treaties of Rome"). In reinsurance, it refers to coverage that is provided automatically (contrast to Facultative Reinsurance).