A reserve created by life insurers for the payment of future bonuses to with profits policyholders.

A type of gross premium valuation that allows explicitly for future bonuses under with profits contracts. The terms bonus reserve valuation and gross premium valuation are regarded as alternative phrases. For some purposes (certain solvency investigations) a gross premium technique will be used with no allowance for future bonuses.

The sacrifice by an employee of all or part of his bonus payment. His employer pays an equivalent amount into an executive pension plan for the employee.

A motor insurance system that gives discounts for claimsfree driving and makes surcharges for claims. See NO CLAIMS BONUS.