Insurance Glossary

An insurance company that provides insurance to other insurance companies, helping them spread risk and reduce their exposure to large losses.

Renewal is the process of extending an insurance policy for another term after the current policy period expires.

In insurance, retention refers to the portion of risk that an individual or business keeps for themselves, rather than transferring it to an insurance company.

In insurance, risk refers to the uncertainty or possibility of loss or damage.

Speculative risk is a type of risk that involves the possibility of both loss and gain.

A staff underwriter is an insurance professional who works within an insurance company’s underwriting department.

Stock insurance companies are insurance companies that are owned by stockholders or shareholders.

Takaful insurance is a type of Islamic insurance that adheres to Islamic law (Sharia) principles. It’s a cooperative system of insurance where participants contribute to a common fund that is used to cover losses suffered by members of the group.

A person or organization that processes insurance claims or performs other administrative services on behalf of an insurance company.

A third-party bill is similar to an agent bill, but instead of an individual agent, it’s sent to a third party, such as an employer, association, or other organization, that is responsible for collecting premiums from a group of individuals and remitting them to the insurer.

Underinsurance occurs when the insured person or business has insufficient insurance coverage to fully replace or repair damaged or destroyed property in the event of a loss.

Underwriting is the process used by insurance companies to assess the risk of insuring a person, property, or business.