One side of the market cycle that is characterized by high rates, low limits, and restricted coverage. Contrasts with a soft market.
Recognition that events have taken place in such a manner as to eventually produce claims but that these events have not yet been reported. In other words, IBNR is a loss that has happened but is not known about. Since it is impossible to know the value of a case not yet reported or investigated, a subjective estimate is often used by insurance companies to recognize losses incurred but not reported.
All open and closed claims occurring within a fixed period, usually a year. Incurred losses include reserves for open claims but do not usually include IBNR losses.
An insured which procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer and whose aggregate annual premiums for insurance on all risks total at least $25,000 and who has at least 25 full-time employees.
Any company that insures risks of the industrial insureds that comprise the industrial insured group, and their affiliated companies.
A loading to provide for increased medical costs and loss payments in the future due to inflation.
A regulatory department charged with the administration of insurance laws and other responsibilities associated with insurance. The commissioner of insurance is the head of this department in most states.
A third party in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to ceding companies the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers.
A provision in reinsurance agreements, which identifies the intermediary negotiating the agreement. Most intermediary clauses shift all credit risk to reinsurers by providing that: the cedant’s payments to the intermediary are deemed payments to the reinsurer; and the reinsurer’s payments to the intermediary are not payments to the cedant until actually received by the cedant.
The income of an insurance company derived from itsinvestments, as opposed to its underwriting operations. The term has special significance in the insurance industry as various factions consider whether such income should be considered in ratemaking.