The weather risk is managed by hedging against poor sales volume and/or increased costs caused by unwelcome weather conditions. Weather derivatives supplement existing risk management tools. The main weather risk management products are structured as caps (see CALL OPTIONS), floors (see PUT OPTIONS), swaps and collars.

Trade association for companies and organisations wishing to the risks associated with unwelmanage come weather. WRMA promotes the industry, provides forums, including an annual conference, for discussion and interaction with others associated with financial weather products.

Like a catastrophe bond it transfers the insurance risk to the capital market. Bond investors sacrifice their interest and/or capital if weather conditions deviate from a reference point. The insurer may, for example, hedge against a prolonged spell of extreme cold capable of triggering an excessive number of weather-related claims.

Certain named perils added to a fire insurance policy. The perils are: storm; flood; burst pipes; sprinker leakage.

Lloyd’s term for non-marine risks, i.e. it is not connected with hulls, marine cargoes or maritime liability, but has a maritime association. Examples include the insurance of dock and port structures, offshore oil and gas structures, bridges, wharves and dams.

Neck injury suffered by drivers and passengers of motor vehicles caused by their sudden involuntary body movement due to a collision. The cost to motor insurers is £600 million to £700 million each year. The ABI has commissioned research under the title, ‘Prevention and Management of Whiplash Neck Injury.

1. The reporting in writing to Opra by an actuary or an auditor of an occupational pension scheme where they suspect that a breach of certain rules has occurred. Others may report such breaches but the actuary and the auditor have a legal duty to do so (PA95, s.48). 2. The FSA can accept whisteblowing information from insiders in regulated firms by virtue of its prescribed regulator status under the Public Interest Disclosure Act 1999. The Act protects ‘whistleblowers’ from reprisals and secures compensation for victims for revealing serious wrongdoing.

Term that applies when a firm, e.g. broker, labels and sells an insurance product under its own name when it is the product of another firm, e.g. an insurer. The FSA does not restrict this practice but has issued a guidance note to say that firms should make clear to the customer the identities of both the insurer and the intermediary and should ensure that their communication with the customer is clear, fair and not misleading.

Refers to excess of loss treaty protecting the whole of the reinsured’s written business or the whole of a category, such as the liability account rather than arranging separate protections for public liability, employers’ liability, third party motor, etc. Whole account cover has many layers, is often on a co-insurance basis and may take care of disasters and clashes.

assurance under which benefit is payable on death whenever it occurs; may be with- or without-profits.