general insurance business characterised by lengthy delay between the period of cover and either the emergence or settlement of claims, or both (contrast short tail business).

An agreement by the insured to renew a policy on the original terms for a given term of years, e.g. three, in return for a premium discount. LTAS are separate contracts and if the insurer offers amended cover, the insured can avoid renewals. LTAs are most common in commercial insurance.
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A mutual agreement whereby in return for agreeing to continue the Insurance for a fixed number of years, the insured is allowed a discount on each annual premium. The Insurer normally retains the right to vary the terms of Insurance during the period but period but is exercised the insured may cancel the agreement without forfeiture of earlier discounts.

the classes of insurance business set out in Part II of Schedule 1 to the Regulated Activities Order and characterised by the long term nature of the contracts; for the most part this business comprises various types of life insurance, annuity and pension business, together with capital redemption business and permanent health insurance.

Liability for an injury, e.g. asbestosis, that takes many years before it is discovered and reported as a claim. As most policies are written on a losses-occurring basis it is necessary to trace the insurer on risk at the time of occurrence. Gradual pollution is also a cause of long-tail liability. See LIABILITY SEQUENCE; OCCURRENCE THEORIES.

Schedule 1 of FSMA 2000 (Regulated Activities) Order 2001, as amended by the FSMA (Regulated Activities) (Amendment Order) (No 2) Order 2003, lists nine classes of long-term business as regulated activities. I. Life and annuity. II. Marriage and birth. III. Linked long-term. IV. Permanent health. V. Tontines. VI. Capital redemption. VII. Pension fund management. VIII. Collective insurance, etc. IX. Social insurance. There are 18 general insurance business classes listed as regulated activities.

Investment bonds designed to cover the cost of care in old age. They can be used to cover ‘residential home’ cost as well as the expenses incurred when care takes place in the home (i.e. residence) of the individual. See LONG-TERM CARE INSURANCE.

UK: (1) event giving rise to a claim, (2) financial disadvantage incurred by the insured as a result of an adverse contingency; (3) cost of settlement of a claim (4) in the term underwriting loss, an excess of amounts payable over amounts receivable (in the usual accounting sense) referable to underwriting.
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US: (1) The basis of a claim for damages under the terms of a policy. (2) Loss of assets resulting from a pure risk. Broadly categorized, the types of losses of concern to risk managers include personnel loss, property loss, time element loss, and legal liability loss.
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MEDICAL,USA: 1. Reason for an insurance claim for recovery of indemnity or payment for damages. 2. Any reduction of the quantity, quality, or value of a property.
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UK: A claim under a policy. The financial loss caused to the insured by the occurrence of the event insured against. Certain ‘loss’ definitions such as constructive total loss are contained in the Marine Insurance Act 1906.
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A general term used to refer to the amount of a claim filed by the insured. This term can also mean the amount the insured’s property value decreased as a result of a loss. This term can also refer to the amount an insurer has paid on behalf of an insured.
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An unintentional decline or disappearance in value arising from an event.
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An unplanned decrease in a property (or other) value which can be measured in rupee terms. As regards insurance the term generally refer to (i) The amount of reduction in the value of an insured’s property caused by an insured peril. (ii) The amount sought through an insurance claim. (iii) The amount paid on behalf of an insured under an insurance contract. (02) What the Policyholder may suffer an what insurance is designed to cover.
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US: The happening of the event for which insurance pays.

A person, sometimes called a public loss assessor, with specialist knowledge, appointed by the insured to assess his claim and negotiate a settlement with the insurer or insurer’s representative, e.g. loss adjuster.
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See: assessor.

1. Occurrence of a single loss. 2. An occurrence of several losses arising out of the same incident or catastrophe in accordance with a policy definition such as an hours clause or claims series clause.

Extension to a business interruption policy covering loss of gross profit due to damage to a nearby attraction that draws passing trade to the business. It is an external dependency. Fire damage at the main store in a shopping mall will reduce sales in neighbouring shops.