Long tail risk meaning

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

This Practice Note explores outsourcing within the insurance market. The related documents pod to the right links to a suite of Practice Notes that deliver broad, practical guidance on commercial outsourcing in general. Outsourcing in insurance Outsourcing has grown markedly across insurance in recent years. Where once insurers largely relied on binding authority arrangements limited to underwriting risk and handling claims, the rise of technology has driven expanded use of third‑party providers. A wide range of activities can now be externalised, including: form processing claims call handling auditing data collection the hiving off of entire books of business (for instance, life portfolios, whose long‑tail profile may require record retention and claims handling for decades after acquisition) Whilst outsourcing can and does deliver advantages for insurers and reinsurers, it also engages numerous legal and regulatory duties when functions are placed with third parties. These start with pre‑contract assessment and continue through to ensuring a smooth disengagement and transfer...