Occupational Pension Scheme
- A scheme set up by employers for the
benefit of their employees. Contributions will be paid by the
employer, and often by employees, and employers may delegate
responsibility for the running of their pension scheme to an
insurance company. See also Defined Benefit Schemes and Defined
Contribution Schemes.
One/Three Year Account
-
Insurance cover is provided for a period of time
agreed in the policy, in the case of general insurance, usually
one year. Where all claims arising from a policy are quickly
identified and dealt with, the insurer can close the books on
that policy soon after the period of cover has ended and
calculate the underwriting profit or loss made. This business
can then be accounted for on a one-year basis. Where claims are
not identified and dealt with so quickly, as is typical for
marine, aviation and transport (MAT) and reinsurance, the
business may be accounted for on a two or three year basis.
Open-Ended Investment Company
(OEIC) -
A type of Collective Investment, similar
to a Unit Trust.
Open Market Option -
An option to move the value of your pension fund
at retirement to another company or pension provider - usually
to purchase a higher amount of pension income known as an
Annuity.
Operating Ratios -
Figures showing ratios of claims, expenses and underwriting in
relation to premium income.
Ordinary Branch
-
Life insurance and pensions business where the
premiums are usually paid through the banking system by cheque,
standing order or direct debit.
'
Other' Company Agents
- Company agents, other than company
staff, as defined in the ABI code for general insurance, whether
they sell the products of one company, or up to six companies.
'
Other' Independent
Agents -
For the purpose of data in this report, any
‘non-IBRC registered’ independent intermediary as defined in the
ABI Code for General Insurance.
Other Intermediaries & Brokers
-
Intermediaries selling insurance products of
seven or more insurers for a particular class of business.
Outgo
-
The total expenditure of an insurer in relation
to any class of insurance business, comprising the cost of
claims and the insurer’s business expenses, including any
commission paid to sales staff, Brokers or Intermediaries,
together with amounts set aside for Reserves.
Partially Contracted-out
- Pension policy that receives both a premium
from the policyholder and a DSS rebate.
Pecuniary Loss -
This class of business loss relates to financial
losses that may have occurred, eg Consequential Loss and
Mortgage Indemnity policies.
Pension - The regular income you get after
you retire.
Pension Annuity
- An annuity which become payable on the
maturity of a pension policy. A pension annuity converts a
pension fund into pension income ie the income to be paid until
death. You buy an annuity with your pension fund from an
insurance company.
Permanent Health Insurance
- See Income Protection.
Persistency -
The rate at which policyholders keep their
policies with a life insurer.
Personal Accident Insurance
- A policy that pays specified amounts of money
if the policyholder is injured in an accident. Depending on the
type of disability, the payments may be made weekly, for a set
period, or as a lump sum.
Personal Equity Plan (PEP)
-
An arrangement that allows a policyholder to pay
money into a plan managed by a fund manager who then invests the
money in equities on behalf of the policyholder.
Personal Lines - Any policy taken out by
an individual in his/her private capacity.
Personal Pension -
Savings plan, with tax advantages, that builds
up a fund to give you a regular income when you retire. You can
pay in regular amounts, one-off occasional amounts, or both.
Pluvius Insurance -
Covers against losses arising as a result of bad weather.
Policy -
The document giving full details of the contract
between the insurer and the policyholder.
Policyholder - Person or organisation to
whom the insurer issues the policy. Normally the person to whom
benefits are payable.
Pool Re -
A Government-backed reinsurance scheme that
meets the cost of claims over £100,000 occurring as a result of
terrorist attacks in Great Britain.
Premium - The amount paid by the
policyholder for insurance.
Private Medical Insurance
-
A policy that covers the cost of private medical
treatment.
Product Liability Policy
- Protects businesses against liability claims
resulting from defects in the products they sell.
Professional Indemnity
-
Provides protection to businesses against errors
cause in their professional capacity eg solicitors who
incorrectly advise clients.
Profit & Loss Account
- The financial statement bringing together the
Revenue Account profit and loss for each class of business,
together with investment income and taxation, and shows the
company profits to be distributed.
Property Damage -
Property policies cover specified property that
may be damaged or destroyed by events or perils such as fire,
storm or theft.
Proportional Treaty
Reinsurance
- Agreements in which the reinsured and
the reinsurer participate in premiums and losses in a fixed
proportion. It can apply to both facultative and treaty
reinsurance.
Proposal Form
- An application for insurance cover.
Proposer - Person or company who applies
to take out insurance.
Proprietary Companies
-
Those that are owned by shareholders.
Provision of Services
- See Freedom of Services.
Provisions -
See Reserves.
Public Liability -
The insurance of liability for accidental bodily injury or
damage to the property of third parties.
Purchased Life Annuity
- A
life annuity which commences immediately on, or
shortly after, purchase. Also know as an Immediate Annuity.
