Glossary of Reinsurance Terms
The general classification of business as utilised in the insurance industry, i.e., fire, allied lines, homeowners, etc.
An arrangement entered into between underwriters and brokers whereby, for a given type of risk, the broker needs to approach only the leading and second underwriter who will accept or reject each risk on behalf of all the underwriters concerned in their agreed proportions. This is an administrative convenience where a broker is placing a large number of similar risks with the same group of underwriters.
Losses incurred expressed as a percentage of earned premiums.