Insurance Terminologies

EMEA: Europe, the Middle East, and Africa

APAC: Asia-Pacific

ASEAN: The Association of Southeast Asian Nations, commonly as ASEAN, is a political and economic union of 10 states in Southeast Asia.

Anglo Markets: UK, Ireland, Australia

NB: New Business

NBP: The New Business Premium (NBP) refers to the premium acquired from new policies sold by an insurance company within a specific reporting period. It is a key performance indicator for insurance companies, highlighting the success of their sales and marketing efforts, and their capacity to grow and attract new customers.

APE: The Annual Premium Equivalent(APE) is the sum of the total value of regular–or recurring–premiums plus 10% of any new single premiums written for the fiscal year.

MDRT: Million Dollar Round Table

ANB: Age Next Birthday

GWP: Gross Written Premium 总承保保费
The total premium income that an insurance company receives from policyholders in a given period before deductions for reinsurance, cancellations, or refunds.

NWP: Net Written Premium 净承保保费

BOP: Business Operating Profit 营业利润
It refers to the profit a company makes from its core operations, excluding any income or expenses related to non-operating activities such as investment gains, interest, taxes, and extraordinary items.

Middle Market: 中型企业
It refers to a segment of the economy that consists of companies that are larger than small businesses but not as large as large corporations.

SME: Small and Medium-sized Enterprises.

PML: Probable maximum loss

CoR: Combined Ratio 承保成本比率
It is a key financial metric used to assess the profitability and efficiency of an insurance company’s underwriting activities. The combined ratio is calculated by adding together the loss ratio and the expense ratio.

$$LossRatio=\frac{ClaimsIncurred}{PremiumsEarned}\times 100$$$$ExpenseRatio=\frac{OperatingExpense}{PremiumsEarned}\times 100$$$$CoR=LossRatio+ExpenseRatio$$

• CoR < 100%: It means the insurer is making an underwriting profit
• CoR = 100%: It means the insurer breaks even on its underwriting
• CoR > 100%: It means the insurer is losing money on its underwriting activities.

PIF: Policies in Force
It refers to the total number of insurance policies that are currently active or in effect with an insurer at any given time.

NPS: Net Promoter Score
It measures customer loyalty and satisfaction with the brand or company as a whole, typically through an annual or quarterly survey.

tNPS: Transactional Net Promoter Score
It measures customer satisfaction with a specific interaction or event, such as a service call, purchase, or delivery.

NRR: Net Revenue Retention or NDR(Net Dollar Retention) It looks at the revenue generated from existing customers, excluding any new customers acquired during the period.

$$NRR=\frac{StartingRevenue+ExpansionRevenue-ChurnedRevenue}{StartingRevenue}\times 100$$

CAGR: Compound Annual Growth Rate

PYD: Prior Year Development
It refers to the changes in the estimated liabilities for claims from prior years that are reported in the current year. ​

CSM: Contractual Service Margin
The CSM represents the expected profit an insurer expects to make from an insurance contract over its term, and it is calculated as the difference between the expected future cash inflows (premiums) and the expected future cash outflows (claims and expenses), discounted to present value.
The amortization of CSM refers to the process of recognizing the profit embedded in the CSM over time under IFRS17.

RA Release: Release of Risk Adjustment(RA)
Under IFRS 17, the Risk Adjustment (RA) is a liability that an insurance company recognizes to reflect the uncertainty regarding the amount and timing of future cash flows associated with an insurance contract.
The RA Release refers to the gradual recognition or reduction of the Risk Adjustment liability as the insurer provides services and the uncertainty related to the cash flows diminishes over time.

SST: Solvency Stress Test
It refers to a process where insurers and other financial institutions test the resilience of their capital and operations under stressed scenarios or adverse economic conditions.

P&C: Property and Casualty Insurance 财产与意外保险

NIAS: Net income attributable to shareholders

PVNBP: Present Value of New Business Premiums

CLTV: Customer Lifetime Value 客户终身价值

PPI: Payment Protection Insurance (支付保护保险), Credit Protection insurance(信用保护保险)
It is a a type of insurance product that was designed to cover an individual's loan, credit card, or mortgage payments in case they are unable to meet those payments due to specific circumstances, such as illness, accident, unemployment, or disability.