marine, aviation and transport business (classes of general insurance).

The risk that liabilities and assets are not properly matched. The risk arises from mismatches related to currency and timing, interest rate risk and inflation risk. It is of major importance to life insurers as mismatching could lead to the sale of investments to meet claims as they fall due at a time of low values. In regard to annuities it is necessary to match annuity liabilities with investments of a similar pattern, e.g. fixed income securities. The FSA prescribes asset and liability valuation rules aimed at minimising this risk.

The insurance of tangible property as distinct from the insurance of persons (life and limb), rights, pecuniary interests, and liability. Fire, theft, motor, cargo and hull policies are all policies that are entirely or partly of a material damage nature where the subject matter of insurance takes the form of tangible property. The property can usually be insured against named perils or on an ‘all risks’ or accidental damage basis.

Business interruption insurance proviso requiring that, before a claim can be allowed, a material damage claim must be admitted; the absence of such insurance would prolong the interruption. When the interruption results from damage at external premises, e.g. the supplier’s, the only requirement is that the damage should have been caused by an insured peril. See CUSTOMERS’ EXTENSION; SUPPLIERS’ EXTENSION; LOSS OF ATTRACTION; DENIAL OF ACCESS; EXTERNAL DEPENDENCIES.

UK: A fact that would influence the judgement of a prudent underwriter in deciding whether to accept a risk for insurance and on what terms. The proposer has a duty to disclose material facts at the inception, at renewal and in respect of mid-term alterations where there has been a change in risk. Examples: motor insurance – details of young drivers; industrial activities – heating processes and previous claims.
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UK: a fact which influences a prudent underwriter in deciding whether to accept or decline a risk, and in determining the rate of premium or the imposition of any special conditions.
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Materiality is a question of fact, to be decided in the circumstances which would influence the judgment of a prudent Insurer in fixing the premium or determining whether he will take the risk and, if so, at what premium and on what conditions.
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MEDICAL,USA: Statement of a situation that is of such importance that disclosure would alter an underwriting decision regarding issuance or rating of an insurance policy or loss settlement.
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This refers to any fact which would influence the judgment of a prudent underwriter in deciding whether to accept an insurance/reinsurance risk and the terms on which he would be willing to grant cover. See duty of disclosure.

A benefit payable under some private health insurances at a specified rate, e.g. £250 for each child, after the policy has been in force for at least 10 months.

a life insurer’s actuarially calculated assessment of its obligations to policyholders; broadly the difference between the present value of anticipated policyholder benefits and present value of future premiums.
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Provision made by an insurer to cover liabilities (excluding liabilities which have fallen due) arising under or in connection with contracts for long-term business.

the end of the term of, for example, an endowment policy.