Insurance selling

An FSA regulated activity covering arranging the purchase of insurance policies; advising on insurance policies; dealing as an agent. Assisting in the administration and performance of policies is also regulated.

Insurance to Value

(i) Property Insurance equal, or almost equal, to the full insurable value of the property. (ii) Amount of property Insurance needed to comply with a Coinsurance requirement. See Also: “Coinsurance.”
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An insurance contract that estimates the worth of the items insured therein.
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The concept of purchasing sufficient insurance coverage so as to closely approximate the value of the property being insured.

Insurance trust

Written agreement created during the lifetime of the individual who creates the trust. It is funded by insurance policies on the life of the trust’s creator or by the proceeds from the policies.

Insurance-linked securities (ILS)

A way of transferring insurance risk to the capital market by way of securitised bonds, e.g. catastrophe bonds and life bonds. They are attractive to investors as they have a high yield and lack correlation with other assets. Losses caused will be unconnected with economic downturns. There are three types of trigger for ILSs: indemnity (actual losses of bond-issuing insurer); index (benchmarking of loss estimates); or parametric.