International ERM Glossary

The International ERM Glossary is intended to provide users with a set of definitions that are in common usage around the world by actuaries, regulators and members of the insurance industry. The purpose in developing the glossary is to help provide a common understanding of the terms currently in use, as definitions and meanings have varied over time, and among practitioners. It can also be used as a training and educational tool for regulators.

The glossary can be consulted per letter, organization or grouping.

DISCLAIMER: The content of the International ERM Glossary has been compiled by the Joint ORSA Subcommittee of the Insurance Regulation Committee and the Enterprise and Financial Risk Committee of the IAA. This information has been collated and presented for educational and informational purposes to the members of the IAA and interested parties. The IAA assumes no responsibility for the accuracy, completeness, currency, reliability of the information in the International ERM Glossary or access to any information contained on any of the sources cited in the Glossary. The IAA, its employees and officers shall not be liable for any loss or damage, direct or indirect, which may arise or occur as a result of the use of or reliance upon any of the material in the International ERM Glossary.


TermGroupingOrganization or Jurisdiction Defining TermSource of DefinitionDefinition
Available CapitalSolvency termsChinaCIRC C-ROSS Conceptual FrameworkThe economic resources that can absorb losses in insurance undertakings on a going-concern basis or upon liquidation. Available capital is equal to admitted assets minus admitted liabilities of insurance undertakings.A
Available CapitalSolvency termsIAISIAIS Supervisory Material(Capital) The financial resources of an insurer and different variation/calculations of capital may be referred to as equity capital (i.e. paid-up, share, subscribed), economic capital and regulatory capital.A
Available CapitalSolvency termsThe European Economic AreaCEA Solvency IIInternally defined capital measure based on the companies' valuation of the market-consistent value of assets minus the market-consistent value of obligations.A
Available CapitalSolvency termsThe European Economic AreaSolvency IINot specifically defined. The term eligible own funds is used as term for the amount of own funds to cover the Solvency Capital Requirement. A
Available CapitalSolvency termsUnited StatesNAIC ORSA MANUALThe amount of resources that an enterprise has at a given point in time under a defined valuation or accounting basis (e.g., economic, statutory, GAAP, or a combination) to support its business and under the defined valuation represents the insurers assessment of the types of capital required to support its business.A