Glossary

AA1000 (AccountAbility1000): a standard developed by the Institute of Social and Ethical Accountability (ISEA) to promote the adoption of CSR principles, thus providing stakeholders with quality assurance in accounting, auditing and social and ethical reporting.

Accident insurance: insurance of individuals or groups against economic risks in the event of death or temporary or permanent disability by accident. A branch of non-life insurance.

Agreed motor accident statement: it is a special form similar to a specific ministerial form used as a claim advice in motor third-party liability insurance. Both parties have to fill it in, sign it and describe how a road accident has happened in order to benefit from quicker claim settlement procedures.

Amount insured: amount up to which the insurer undertakes to fulfil its obligation. In property insurance, the amount insured usually corresponds to the value of insured property (insurable value). In third party liability insurance or expenses insurance, it is the agreed amount indicating the insurer’s maximum underwritten amount (limit). In life insurance, it is a lump sum payable to the beneficiary as an alternative to the payment of an annuity.

ANIA: Italian Association of Insurances Companies (Associazione Nazionale fra le Imprese Assicuratrici).

Annual Premium Equivalent (APE): total amount of regular premiums from new business + 10% of new single premium contracts. It is used to calculate the value of new life business.

Arbitration: a non-court procedure for resolving disputes arising between the insurer and the insured. In general, arbitration is envisaged by a specific clause in the insurance contract.

Area of consolidation: all the companies aggregated through the “full consolidation” method included in the Consolidated Financial Statements.

Asset: any item of economic value recorded in the assets such as owned properties, liquid assets, receivables, etc

Asset Management: the business of managing third party (and other) financial investments.

Assistance insurance: insurance contract whereby the insurer undertakes to immediately help the insured if he/she is in difficulties following an accident (e.g. a car breakdown, a personal accident abroad etc.).

Bankinsurance: term that is commonly used to refer to the sale of insurance products - mainly life insurance products - through banks.

Benchmark: an objective reference parameter used to evaluate company performance in relation to analogous companies.

Beneficiary: a natural person or legal entity entitled to the policy benefits provided by the insurance company (lump sum, annuity or refund of net premiums paid) upon the occurrence of the events described in the contract. The beneficiary is appointed by the contractor who can - with a few exceptions - revoke or change his/her decision at any time.

Best practice: the most significant experiences or those achieving the best results which are adopted in similar contexts.

Bonus-malus: clause of the compulsory motor third party liability insurance contract whereby the premium is adjusted according to the occurrence of claims caused by the insured over a certain period of time. This system divides drivers by classes that are different among companies; each class corresponds to a premium level. People who take out an insurance for the first time are included in the so-called starting class corresponding to an intermediate premium level. In the following years, the premium will increase or decrease according to the claim history of the insured.

Broker: an insurance or reinsurance broker whose profession entails creating direct contacts between an insurance or reinsurance company, with whom he has no binding commitments, and people who intend to draw on his services to obtain risk coverage. He helps determine the content of contracts and where necessary participate in their management and execution.

The above definitions are planned to offer our web site users a general, courtesy explanation: they are not meant to be used in contractual nor legal contexts.

last update on 24-02-2011 15:19