IIQE (HK) key terms

A person, asset, activity or financial interest subject to a possible loss, which must be identified before treatment alternatives are compared.

The number or rate of loss events over a defined exposure and period, distinct from the size of each loss.

The monetary or other defined magnitude of an event’s consequences, requiring a consistent unit and scope when observations are compared.

Keeping specified financial consequences within the organization or household rather than transferring those consequences through an external contract.

Allocation of specified financial consequences to another party under an arrangement, with residual contractual and counterparty risks potentially remaining.

An amount of covered loss retained by the policyholder under the contract’s stated calculation, which must not be assumed identical across products.

A contractual upper boundary on specified payments or coverage, applied using the actual wording, aggregation period and relevant sublimits.

Contract wording removing a specified circumstance or cause from coverage, subject to the actual policy and applicable legal interpretation.

A contractual amendment that can alter a policy’s terms, so coverage analysis must read it together with the relevant base wording.

Evaluation of a proposed exposure and the terms on which protection may be offered, using appropriate information and applicable constraints.

The contractual amount charged for defined insurance protection, distinct from a guaranteed investment return or the amount payable for every loss.

A request for a benefit or payment arising from an alleged insured event, requiring examination of coverage and supporting evidence.

A principle relating some insurance payments to a covered financial loss, whose operation and exceptions depend on product and law.

A concept concerning an insurer’s pursuit of certain recovery rights after payment, dependent on the actual contract and applicable law.

A separate arrangement transferring specified insurer exposure to another insurer, without automatically releasing the original policyholder obligation.

An arrangement allocating specified premiums and losses in agreed proportions, with the contract defining the exact scope and calculation.

A specified loss interval above an attachment amount and subject to a limit, rather than automatic cover of every consequence.

The premium amount attributed to expired coverage under a specified accounting model, distinct from the entire premium written or cash received.

An estimate of obligations associated with claims under a defined measurement framework, rather than necessarily an equivalent dedicated cash asset.

A measure combining defined loss and expense ratios to analyze underwriting, whose components and denominators must be checked before calculation.