## Actuary 

Mathematics professional who specializes in the probability of insurance, annuities, and financial instruments. 

## Annuity 

Contract that provides for income payments to an insured at regular intervals, either for a specific period or for the lifetime of the insured, in exchange for premium. 

## ASEAN 

Association of Southeast Asian Nations. 

## Asset-intensive reinsurance 

The reinsurance of annuities and corporate-owned life insurance. 

## Assumed reinsurance 

Insurance risk that a reinsurer accepts (assumes) from a ceding company. 

## Automatic reinsurance 

Reinsurance arrangement whereby the ceding company and reinsurer agree that all business of a certain description will be ceded to the reinsurer. Under this arrangement, the ceding company assumes full underwriting responsibility for all business reinsured. 

## Bancassurance 

The provision of insurance and banking products and services through a common distribution channel and/or to the same client base. 

## Capital-motivated reinsurance 

(Also known as financial reinsurance, financially motivated reinsurance or non-traditional reinsurance.) Reinsurance designed to meet a financial objective of an insurer. For example, financial reinsurance can aid in an insurer’s tax planning efforts or can provide capital in order to support an insurer’s future growth. 

## Cedant/Ceding company 

Direct insurer or reinsurer that passes on shares of its insured or reinsured risks to a reinsurer in exchange for premium. 

## Claim 

Demand on an insurer or reinsurer for payment under the terms of an insurance policy. 

## Coinsurance 

A form of reinsurance under which the ceding company shares its premiums, death claims, surrender benefits, dividends, and policy loans with the reinsurer and the reinsurer pays expense allowances to reimburse the ceding company for a share of its expenses. 

## Critical illness insurance 

(Also known as dread disease insurance.) An accelerated death benefit under which the insurer agrees to pay a portion of the policy’s face amount before the insured dies if the insured suffers from one of a number of specified diseases such as cancer, stroke, and heart attack. 

## Demutualization 

Process of converting the ownership of a mutual company (owned by its policyholders) to stock ownership. 

## Expected mortality 

Number of deaths predicted to occur in a defined group of people. 

## Face amount 

Amount payable at the death of the insured or at the maturity of the policy. 

## Facultative reinsurance 

A type of reinsurance in which the reinsurer makes an underwriting decision, to accept or decline, on each risk sent to it by the ceding company. 

## Financial reinsurance 

(Also known as financially-motivated reinsurance, asset-intensive reinsurance, capital-motivated reinsurance or non-traditional reinsurance.) 

Reinsurance designed to meet a financial objective of an insurer. For example, financial reinsurance can aid in an insurer’s tax planning efforts or can provide capital in order to support an insurer’s future growth. 

## GAAP 

(Generally Accepted Accounting Principles) A set of financial accounting principles that U.S. and Canadian companies follow when preparing financial statements for reporting results to stockholders and, in Canada, to regulators. 

## Group life insurance 

Insurance policy under which the lives of a group of people are insured in accordance with the terms of one master contract. 

## In force sum insured 

A measure of insurance in effect at a specific date. 

## Individual life insurance 

Insurance policy that is issued to insure the life of a named person or persons, rather than that of a group. 

## Mortality experience 

Actual number of deaths occurring in a defined group of people. 

