A rigorous, coordinated approach to risk management within an organisation. The aim is to identify, prioritise, quantify, mitigate and finance risk from all sources that threaten the achievement of both strategic and financial objectives. The financial and ‘insurance’ risks are integrated in a single programme. Alternative terms enterprise risk management and financial risk management could be construed more narrowly.
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See: Enterprise-wide risk management.

Business underwritten in the UK for UK residents.

Principle of EC insurance regulation under which an insurance company that conducts business in several Member States is subject only to the licensing and supervision of its home country. See SINGLE EUROPEAN LICENCE.

Covers emergencies involving the roof, drains, plumbing, heating, electrics, vermin etc. Features 24 hour call out and up to £250 for call out charges, parts, materials and VAT. Separate benefit for overnight accommodation if needed.

General insurance business underwritten in the UK relating to risks situated outside the UK. Marine, aviation and transport business and treaty reinsurance is normally excluded from this definition. See also services business and non-admitted insurer.

Equity release schemes such as lifetime mortgages whereby an elderly person mortgages his or her house to an insurance company or other institution to fund an annuity (joint life and survivor annuity for couples). Mortgage interest is met from the annuity instalments (or deferred until death) leaving an income for the homeowner(s). The loan, up to 80% of the value, and any rolled-up interest is repaid on death but the estate benefits from any capital appreciation. Compare with home reversion plan.

Entitlement to the basic state pension for persons unable to accept regular employment because they are caring for children or a sick or disabled person at home.

Like home income plans, but the house is sold outright to the insurance company in return for an immediate annuity and a life tenancy. The sale price is below market value and the insurance company or institution purchasing the property benefits from any increases in property value. After death nothing remains for any dependants.

The structuring of an insurance portfolio to make the exposure within it more similar, e.g. through the use of surplus treaty reinsurance.