The amount added to a premium calculation to allow for the insurer’s expenses. Other premium computation items are: contingency loading, risk premium and profit loading.
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The element of the Insurance premium covering the Policy-holder’s share of the Insurer’s administrative costs.

A particular risk for life companies whose relatively high fixed costs need to be recovered by the expenses loading. The recovery therefore depends on the volume of sales. In non-life business the main expenses risk factor is the significant cost of legal expenses that arise in court settlements such as employers’ liability and motor insurance injury claims.

UK: a refund of premiums made to the insured when the claims payable under the contract are at a lower level than anticipated by the insurer.
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MEDICAL,USA: Insurance premium returned by an insurance company to a group policyholder because the financial experience of the group has been more than the premiums collected from that which was anticipated. Also called dividend, experience rating refund, premium refund , and retroactive rate reduction .
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UK: Term used by life reinsurers to describe the profit commission that they pay to the ceding office as a refund based on the profitability of the business.
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Under a reinsurance agreement, that part of the profits that is returned to the cedant after recognition of contingency reserves, loss carryforward, and loss carryback provisions. See Carryover provision.

In engineering insurance explosion means the sudden and violent rendering of the plant by force of internal steam or other fluid pressure (other than pressure of ignited flue gases) causing bodily displacement of any part of the plant, together with forcible ejectment of the contents. The risk is insured by using the term explosion or collapse as a way of specifying the insured perils. They are the prinicipal risks covered in respect of boilers and steam pressure vessels under the control of the insured.

The standard fire policy covers concussion damage following the explosion: (a) of boilers used for domestic purposes. (b) in a building not forming part of a gas works of gas used for domestic purposes or for lighting. No other concussion damage is covered under the standard fire policy but fire consequent upon explosion is covered. Other explosion damage can be added as an additional peril.

A clause in material damage and public liability policies excluding liability directly or indirectly caused by or contributed to by or arising from the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof. See NUCLEAR PERILS.

The UK’s official export credit agency under the Export Credit and Investment Guarantee Act 1991. Exporters selling UK goods and services on credit terms of less than two years now insure with private credit insurers for whom ECGD provides a number of reinsurance facilities. Direct cover from ECGD includes: export insurance policy; overseas investment insurance (visit www.ecgd.gov.uk).

EXIP issued by the Export Credit Guarantee Department. Insures exporters against the principal political and commercial risks of not being paid in connection with individual capital goods, major services and construction projects. Contracts involving the sale of consumer goods or commodities on short payments are insured in the private sector. EXIP covers up to 95 per cent of the value of any loss suffered.

Harm of a progressive nature from a latent substance within the body even after active exposure has ceased. In asbestosis and similar contexts, it is the period during which the body incurs injury or disease as tissue reacts to the hazardous substance. See LONG-TAIL BUSINESS; MESOTHELIOMA.

A theory that equates the time of ‘occurrence’ of a ‘long-tail’ injury, such as asbestosis, with the time of exposure to the cause of the injury for the purpose of a losses-occurring policy, the cause meaning harmful working conditions and/or exposure to harmful substances. All insurers on risk during this exposure period are deemed to be liable for the resultant liability in proportion to their time on risk. Alternative occurrence theories include the manifestation theory; the injury-in-fact theory; and the triple trigger theory.