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.

Export

Glossary
TermGroupingOrganization or Jurisdiction Defining TermSource of DefinitionDefinition
Insurance Risk (see Underwriting Risk)Risk CategoriesChinaCIRC C-ROSS Conceptual FrameworkThe risk of losses caused by adverse deviation from expected experience of mortality, morbidity, loss ratio, lapse, etc.I
Insurance Risk (see Underwriting Risk)Risk CategoriesIAISIAIS Supervisory Material(Insurance Risk, Technical Risks) Represent the various kinds of risk that are directly or indirectly associated with the technical or actuarial bases of calculation for premiums and technical provisions in both life and non-life insurance, as well as risks associated with operating expenses and excessive or uncoordinated growth. Technical risks result directly from the type of insurance business transacted. They differ depending on the class of insurance. Technical risks exist partly due to factors outside the company's area of business activities, and the company often may have little influence over these factors. The effect of such risks - if they materialise - is that the company may no longer be able to fully meet the guaranteed obligations using the funds established for this purpose, because either the claims frequency, the claims amounts, or the expenses for administration and settlement are higher than expected. (Underwriting Risk) Includes claims, expense and reserving risks and the risks associated with guarantees and options embedded in policies.I
Insurance Risk (see Underwriting Risk)Risk CategoriesThe European Economic AreaSolvency IISee Underwriting RiskI
Insurance Risk (see Underwriting Risk)Risk CategoriesUnited StatesU.S. ASB TermsThe extent to which the level or timing of actual insurance cash flows is likely to differ from expected insurance cash flows.I