Impairment of an insurance company’s assets to the point where it no longer maintains the required margin of solvency but which would not make a non-insurance company insolvent.

the provisions and reserves shown in the regulatory return in respect of general insurance; the term is also used of the equivalent accounts provisions/reserves.

Funds available to the insurer to meet future claims on insurance that has been underwritten. In the UK the reserves must include: the unexpired premium reserve; the unexpired risk reserve; outstanding claims reserve; reserve for claims incurred but not yet reported (IBNR). Common prudence might call for additional reserves, e.g catastrophe reserve.
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The accounting entries in the balance sheet which represent the insurer’s liabilities from the business which has been written. For example, UPR, URR, outstanding claims reserve, equalization reserve, etc. Also, See Also: “Policyholders funds.”

Rule of construction meaning that where technical or legal words are used in a policy they are to be given their strict technical legal meaning unless the policy shows a different intention. Example: Four armed men stole cash from the insured. There was no other disturbance in the area, but technically there had been a ‘riot’ the definition of which (at that time) required only that there should be three persons with a common purpose threatening violence. The exclusion of ‘riot’ applied.

Risk related to the rapid development of new technologies. Certain changes may have a significant impact on health and therefore employers’ liability claims, e.g. repetitive strain injury, from inceased use of visual display units. Technological changes have also impacted on the effectiveness of distribution channels leading to more insurance, especially personal lines, being sold and serviced electronically. This could adversely affect insurers and intermediaries more reliant on traditional methods.

Relates to failure of technology, e.g. systems failure, poor data quality, software problems, etc.