Insurance runs on precise wording: a single word in a policy, such as 'exclusion', 'deductible' or 'peril', can decide whether a claim is paid. This glossary gathers the English terms insurance professionals use every day, from policies, premiums and claims to underwriting, reinsurance and distribution, with natural Turkish equivalents and examples from real work.
100 terms
11 topics
42 core terms
200 example sentences
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Policies & Contracts
insurance
noun
Meaning
An arrangement in which a company agrees to pay for certain losses or damage in exchange for regular payments, so that one person's risk is shared by many.
Where you use it
The most general word in the field. People buy, have or take out insurance, and companies sell or provide it. It also names the industry: 'She works in insurance.' In everyday English it is usually uncountable.
Examples
Do you have insurance for the new office equipment, or is it still under the supplier's warranty?
After ten years in insurance, he moved from claims to underwriting.
Usage note
In everyday English, say 'an insurance policy' rather than 'an insurance'. The plural 'insurances' mostly appears in contracts that list several required policies.
Common phrases
take out insurance · insurance company · insurance cover · insurance industry · compulsory insurance
The written contract between an insurance company and a customer that sets out what is covered, for how long, for how much and on what conditions.
Where you use it
Used constantly by agents, underwriters and claims staff. A policy is issued, renewed, cancelled or amended, and usually runs for a policy period of one year. Every policy has a policy number used in all correspondence.
Examples
Could you send me your policy number so I can check what is covered?
The policy was issued yesterday and the documents have been emailed to the customer.
Usage note
In politics and business, 'policy' also means a plan or set of rules ('company policy'). In insurance it nearly always means the contract itself.
Common phrases
issue a policy · renew a policy · cancel a policy · policy number · insurance policy
The person or company that owns an insurance policy, signs the contract and is responsible for paying the premium.
Where you use it
Used in policy documents, letters and customer service. Insurers send renewal notices to the policyholder and need the policyholder's consent to change the policy. Often the same person as the insured, but not always.
Examples
The company is the policyholder, but each employee is insured under the group health plan.
We can only discuss the policy details with the policyholder.
Usage note
Turkish separates three roles: 'sigorta ettiren' (policyholder), 'sigortalı' (insured) and 'lehtar' (beneficiary). Do not translate all three as 'insured'.
Common phrases
the policyholder's consent · notify the policyholder · individual policyholder · corporate policyholder
A company that sells insurance policies, collects premiums and pays valid claims; in other words, the side that carries the risk.
Where you use it
Formal and very common in contracts, news and industry reports. People also say 'insurance company' or, in the US, 'carrier'. Insurers launch products, raise prices and pay out claims; customers switch insurers.
Examples
Several insurers have stopped offering flood cover in the area.
The insurer asked for the repair invoices before making a decision.
Usage note
Turkish 'sigortacı' can mean the company or a person who works in insurance. English 'insurer' is the company; a person is an 'insurance professional' or is named by job title.
Common phrases
leading insurer · switch insurers · the insurer's liability · major insurers
The person or organisation whose life, health, property or legal responsibility is protected by a policy. It is usually written 'the insured'.
Where you use it
Common in policy wordings and claims letters: 'The insured must notify us...'. As an adjective it means protected by insurance: an insured vehicle, insured losses. Do not confuse it with 'insurer'.
Examples
The insured must report any theft to the police within 24 hours.
Insured losses from the earthquake were far lower than the total economic damage.
Common phrases
the insured person · named insured · insured value · insured losses
To protect someone or something with an insurance policy, either as the company selling the policy or as the customer buying it.
Where you use it
Both sides use it: the company insures its customers, and a customer insures a car or a house. You insure something against a risk ('insure against fire') and for an amount ('insure it for 2 million').
Examples
We insure more than 40,000 homes in the Aegean region.
The gallery insured the paintings for their full market value.
Usage note
Do not mix up insure, ensure and assure. 'Ensure' means to make sure ('ensure the payment is made'); 'assure' means to tell someone confidently. Only 'insure' is about insurance.
Common phrases
insure against · insure for · fully insured · insure a vehicle
To buy an insurance policy and start a contract with an insurance company.
Where you use it
The most natural way to say 'buy insurance' in English. You take out insurance, take out a policy or take out cover, often followed by 'on' or 'for'. Common in advice from agents, banks and travel companies.
Examples
Most of our customers take out insurance on the same day they collect the car.
You should take out travel insurance as soon as you book the trip.
Usage note
Turkish 'sigorta yaptırmak' is not 'make insurance' or 'do insurance'. Say 'take out insurance' or simply 'get insurance'.
Common phrases
take out a policy · take out cover · take out life insurance · take out insurance on
The continuation of a policy for another period, usually a year, often with an updated premium and conditions.
Where you use it
A busy time for every agency and insurer. Insurers send renewal notices or offers before the expiry date, and the renewal rate shows how many customers stay. Some policies renew automatically. The verb is 'renew'.
Examples
Your renewal offer is 12 percent higher because of last year's claim.
We start calling customers 30 days before renewal.
Ending an insurance policy before its expiry date, either by the customer or by the insurance company.
Where you use it
Happens when a car is sold, a customer switches insurer or premiums are not paid. The policy wording explains notice periods and how much premium is refunded after cancellation. The verb is 'cancel'.
Examples
After the car was sold, we processed the cancellation and refunded the unused premium.
Cancellation by the insurer requires written notice to the policyholder.
Common phrases
cancellation fee · notice of cancellation · request a cancellation · mid-term cancellation
A written change added to an existing policy, for example to add a driver, change an address or increase the sum insured.
Where you use it
Daily work for agents and policy administration teams. Endorsements are issued during the policy period and may create an additional or return premium. British speakers may also say 'amendment'.
Examples
We'll issue an endorsement to add your son as a driver from Monday.
The endorsement increased the sum insured and generated an additional premium of 1,200 lira.
Usage note
Outside insurance, 'endorsement' usually means public support or approval, for example a famous person promoting a product.
Common phrases
issue an endorsement · policy endorsement · endorsement premium · add an endorsement
The page or section of a policy that lists its specific details: the policyholder, what is insured, sums insured, limits, deductibles, premium and dates.
Where you use it
Read first when checking a policy. Customers are told to check their schedule carefully, and it works together with the general policy wording. American policies call it the 'declarations page'.
Examples
Your deductible is shown on the first page of the policy schedule.
Please check the policy schedule and tell us if any details are wrong.
Common phrases
check the schedule · schedule of cover · updated policy schedule · as shown in the schedule
The full legal text of a policy, explaining the cover, exclusions, conditions and duties of both sides.
Where you use it
Used by underwriters, brokers and lawyers when they discuss what a policy really says. Wordings are drafted, reviewed and compared, and disputes often depend on a single clause. Also called the 'terms and conditions'.
Examples
According to the policy wording, the cover applies only to buildings with an alarm system.
The broker compared the policy wordings of both insurers before recommending one.
Common phrases
standard policy wording · read the policy wording · draft a wording · clause in the wording
To stop being valid because the premium was not paid or the policy was not renewed in time.
Where you use it
Used mainly in life and health insurance. A policy lapses, and insurers track the lapse rate to see how many customers stop paying. A lapsed policy can sometimes be reinstated. Also used as a noun: 'policy lapse'.
Examples
His life policy lapsed after he missed three monthly payments.
Lapse rates usually rise when household budgets are under pressure.
Common phrases
let a policy lapse · lapse rate · lapsed policy · reinstate a lapsed policy
A short time after buying a policy during which the customer can cancel it and usually get the premium back.
Where you use it
A consumer protection term found in policy documents and sales scripts. The length depends on the country and the product, often 14 or 30 days. Sales staff must tell customers about their right to cancel within this period.
Examples
You can cancel the policy without giving a reason during the 30-day cooling-off period.
The customer called on day ten, so she was still within the cooling-off period.
Common phrases
within the cooling-off period · cooling-off period ends · 14-day cooling-off period · right to cancel
A real financial interest in the person or property being insured, so that the policyholder would suffer a loss if something happened to it.
Where you use it
A legal requirement for a valid policy, discussed in training and in disputes. Owners, tenants and lenders all have an insurable interest in a building, but you cannot insure a stranger's house.
Examples
As the lender, the bank has an insurable interest in the property until the loan is repaid.
The claim was rejected because the policyholder had no insurable interest in the car.
Common phrases
have an insurable interest · lack of insurable interest · insurable interest in
The principle that both sides of an insurance contract must be completely honest and share all important information with each other.
Where you use it
A basic principle taught in insurance courses, known in Latin as 'uberrimae fidei'. It explains why customers must disclose material facts and why insurers must explain the cover honestly.
Examples
Insurance contracts are based on utmost good faith, so hiding previous claims can void the policy.
The court said the insurer had also breached its duty of utmost good faith.
Common phrases
principle of utmost good faith · duty of utmost good faith · breach of utmost good faith
The amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
Where you use it
The price of insurance. Premiums are calculated, quoted, charged and paid, and they go up or down at renewal. Industry reports talk about premium income and premium growth.
Examples
Your annual premium is 8,400 lira, and you can pay it in nine monthly instalments.
Premiums for older cars have gone up sharply because repair costs have risen.
Usage note
False friend: in Turkish, 'prim' also means a bonus paid to an employee. In English that is a 'bonus'; an insurance 'premium' is what the customer pays.
Common phrases
pay a premium · annual premium · premium increase · premium income · monthly premium
A statement of how much a policy will cost and on what main terms, given to a customer before they decide to buy.
Where you use it
Customers get, request or compare quotes; agents and brokers prepare them, and insurers issue them. A quote is usually valid for a limited time. 'Quote' is also a verb: 'They quoted us 12,000 lira.' The formal noun is 'quotation'.
Examples
I've attached quotes from three insurers so you can compare the cover.
This quote is valid for 15 days and is based on the information you gave us.
Common phrases
get a quote · request a quote · compare quotes · online quote · quote reference
Extra time after a premium is due during which the customer can still pay and the policy stays in force.
Where you use it
Mentioned in letters about missed payments, especially in life and health insurance. A grace period is given or allowed, often 30 days in life insurance. If the premium is not paid before it ends, the policy may lapse.
Examples
Your payment is late, but you are still within the 30-day grace period.
If the premium isn't paid by the end of the grace period, the policy will be cancelled.
Common phrases
within the grace period · 30-day grace period · grace period expires · allow a grace period
A specialist who uses statistics and mathematics to measure risk, calculate premiums and estimate how much money an insurer must keep for future claims.
Where you use it
A highly qualified profession with its own exams. Actuaries build pricing models, set reserves and sign actuarial reports for regulators. The adjective is 'actuarial': actuarial tables, actuarial valuation.
Examples
The actuaries say we need to raise motor premiums by 25 percent to cover rising repair costs.
Our appointed actuary reviewed the claims reserves before the year-end close.
Common phrases
appointed actuary · actuarial report · actuarial model · actuarial tables
An extra amount added to the standard premium because a risk is higher than normal, for example because of a health condition or a dangerous job.
Where you use it
Underwriters apply or add a loading, usually as a percentage: 'a 50 percent loading for diabetes'. Actuaries also use 'loading' for the parts of a premium that cover expenses and profit.
Examples
Because he works on offshore oil platforms, the underwriter applied a loading of 30 percent.
The policy was accepted with a loading for high blood pressure.
Common phrases
apply a loading · premium loading · medical loading · loading for
Calculated in proportion to the time or share involved, for example a premium refund based on the exact number of unused days.
Where you use it
Used for refunds, mid-term changes and shared risks: a pro rata refund, a pro rata premium. In cancellations the alternative is 'short-rate', where the insurer keeps a little more than the time-based share. It comes from Latin and has no hyphen.
Examples
If you cancel after four months, we'll refund the premium on a pro rata basis.
The additional premium for the new vehicle was calculated pro rata to the end of the policy year.
Common phrases
pro rata refund · on a pro rata basis · pro rata premium · calculated pro rata
The protection a policy gives: which risks, losses and amounts the insurance company will pay for.
Where you use it
A key word in sales and claims conversations. Coverage can be full, limited, extended or additional; customers ask what the coverage includes, and claims handlers check whether a loss falls within coverage.
Examples
Does the coverage include flood damage, or do we need to add it separately?
We extended the coverage to the new warehouse from the first of March.
Usage note
US English prefers 'coverage', while British English often uses 'cover' as the noun: 'We need cover for the trip.' Both are correct.
Common phrases
full coverage · extend coverage · coverage limit · additional coverage · lack of coverage
The part of each loss that the customer pays before the insurance company starts paying. A higher one usually means a lower premium.
Where you use it
Explained in every sales conversation for car, home and health insurance. A deductible can be a fixed amount or a percentage, and customers choose a higher or lower one. The British word is 'excess'.
Examples
With a 5,000 lira deductible, the insurer paid 37,000 of the 42,000 lira repair bill.
If you choose a higher deductible, your premium drops by about 15 percent.
Usage note
US 'deductible' = UK 'excess'. In accounting, 'deductible' also describes an expense that can be subtracted from taxable income, which is a completely different idea.
Common phrases
pay the deductible · high deductible · deductible amount · choose a deductible · per-claim deductible
A situation, cause or type of loss that a policy clearly says it does not cover.
Where you use it
Listed in a separate section of every policy wording. Typical exclusions are war, wear and tear, intentional damage and drunk driving. A claim is rejected when an exclusion applies, and customers often say they did not know about it.
Examples
Damage caused by gradual water leakage is an exclusion in most home policies.
The claim was declined because the driver had no valid licence, which is a standard exclusion.
Common phrases
standard exclusion · exclusion clause · an exclusion applies · list of exclusions · war exclusion
The maximum amount an insurance company will pay under a policy, usually based on the value of the property or the amount chosen for a life policy.
Where you use it
Shown on every policy schedule. Customers set or increase the sum insured, and underwriters check that it matches the real value. If it is too low, the property may be underinsured.
Examples
We recommend a sum insured of at least 4 million lira for the building.
The sum insured for the machinery hasn't been updated since 2021.
Common phrases
increase the sum insured · total sum insured · adequate sum insured · sum insured per item
To include a risk, person or cost in an insurance policy, so that the insurance company will pay if a loss happens.
Where you use it
One of the most frequent verbs in the field. Customers ask 'Am I covered?' and 'Is this covered?'; a policy covers fire, theft or medical costs. British English also uses it as a noun: 'travel cover'.
Examples
Your policy covers theft from the car only if the vehicle was locked.
Are dental treatments covered under the corporate plan?
Common phrases
be fully covered · cover the cost · covered by insurance · covered risks · not covered
The highest amount an insurance company will pay, either for one claim, for one type of cost or for all claims during the policy period.
Where you use it
Limits can apply per claim, per person, per event or in aggregate for the whole year. Customers ask to raise their limits, and any amount above the limit is not paid by the insurer. Also called the 'limit of liability' or simply the 'limit'.
Examples
The policy limit for jewellery is 50,000 lira, so the rest of the loss is not covered.
We advised the client to raise the policy limit on their liability cover after they won a larger contract.
Common phrases
raise the policy limit · per-claim limit · aggregate limit · exceed the policy limit
A specific event or cause that can lead to a loss, such as fire, flood, storm, earthquake or theft.
Where you use it
A technical word in property insurance. A policy either lists named perils or covers 'all risks' except the exclusions. Professionals talk of insured perils, natural perils and additional perils such as earthquake.
Examples
The policy covers named perils only: fire, lightning, explosion and storm.
Flood is one of the perils the factory is most exposed to.
Usage note
In everyday English 'peril' sounds formal or old-fashioned ('in peril'), but in insurance it is a normal technical word.
The gradual damage that happens to things through normal use and age, which insurance policies usually do not cover.
Where you use it
A standard exclusion in home, motor and equipment policies, and a frequent reason for rejected claims. Adjusters must decide whether damage was sudden and accidental or simply wear and tear.
Examples
The roof leak was caused by wear and tear, so the claim isn't covered.
Worn brakes and tyres count as normal wear and tear.
Common phrases
normal wear and tear · fair wear and tear · excluded as wear and tear · due to wear and tear
A situation where the sum insured is lower than the real value of the property, so the insurer may pay only part of a loss.
Where you use it
Common after inflation or renovations. Many policies apply a proportional rule, called 'average' in the UK: if property is insured for 60 percent of its value, only 60 percent of the loss is paid. The adjective is 'underinsured'.
Examples
Because of underinsurance, the company received only half of the repair cost.
Underinsurance is common because many owners never update the sum insured.
Common phrases
risk of underinsurance · avoid underinsurance · be underinsured · apply average
Payment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.
Where you use it
A key principle of non-life insurance: nobody should profit from a loss. Used in contracts and wordings ('the insurer will indemnify the insured') and in product names such as professional indemnity insurance.
Examples
Under the principle of indemnity, we pay the value of the old roof, not the cost of a luxury one.
The contract requires the supplier to provide indemnity for any damage caused on site.
Common phrases
principle of indemnity · professional indemnity · indemnity limit · indemnify the insured
An optional extra added to a basic policy, especially in life and health insurance, that gives additional cover for an extra premium.
Where you use it
Common in US life insurance: critical illness rider, accidental death rider, waiver of premium rider. British English more often says 'add-on' or 'optional extra'. Customers add or attach a rider to a policy.
Examples
You can add a critical illness rider for an extra 40 lira a month.
The disability rider pays the premiums if you can no longer work.
Usage note
In everyday English a 'rider' is a person riding a horse, bike or motorbike. In contracts it means an added clause.
Common phrases
add a rider · critical illness rider · accidental death rider · policy rider
A formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.
Where you use it
The central word of claims departments. Customers make or file a claim; the insurer registers, assesses, approves, rejects and settles it. Staff speak of claim numbers, open claims and claims handlers.
Examples
We received over 3,000 claims in the week after the hailstorm.
Your claim has been approved, and the payment will reach your account within five working days.
Common phrases
make a claim · settle a claim · reject a claim · claim number · claims department
To officially ask an insurance company to pay for a loss, usually by reporting it and sending the required forms and documents.
Where you use it
Used by customers, agents and call centre staff. You file a claim with your insurer for a loss, today often online or in an app. British speakers prefer 'make a claim'; 'put in a claim' and 'submit a claim' are also common.
Examples
You can file a claim online and upload photos of the damage.
She filed a claim for her stolen laptop two days after the break-in.
Usage note
Because of Turkish 'dosya açmak', learners sometimes say 'open a claim'. Claims staff do say they open a claim file, but the customer normally 'files' or 'makes' a claim.
Common phrases
file a claim with · file a claim for · file a claim online · deadline to file a claim
Damage, destruction or a financial cost suffered by an insured person or property, which may lead to a claim.
Where you use it
A basic technical word. Losses occur and are reported, assessed and paid. Professionals talk about the date of loss, loss estimates, partial and total losses and large losses. In many contexts it is close to 'claim'.
Examples
The loss occurred on 3 May, but the customer only reported it two weeks later.
Our initial loss estimate for the factory fire is around 20 million lira.
Common phrases
date of loss · loss estimate · partial loss · large loss · suffer a loss
The money an insurance company pays to a customer or beneficiary after a valid claim.
Where you use it
Common in news, customer conversations and reports. People receive a payout; payouts can be quick, delayed, full or partial. The phrasal verb is 'pay out': 'The insurer paid out 2 billion lira after the floods.'
Examples
The family received the full payout three weeks after submitting the documents.
Payouts for storm damage reached a record level this year.
Common phrases
receive a payout · full payout · insurance payout · delay a payout
A specialist who investigates a claim, inspects the damage and decides how much the insurance company should pay.
Where you use it
A US term. Adjusters visit sites, take photos, interview witnesses and write reports. In the UK an independent expert is a 'loss adjuster'. In Turkey this role is played by licensed experts ('eksper') appointed for many car and property claims.
Examples
The claims adjuster will inspect the car at the service centre on Thursday.
According to the claims adjuster's report, the fire started in the kitchen.
Usage note
US 'claims adjuster' = UK 'loss adjuster'. In Britain a 'claims handler' is the insurer's office-based employee who manages the file.
Common phrases
independent claims adjuster · appoint an adjuster · adjuster's report · send a claims adjuster
The final agreement on a claim and the payment that closes it, made after the insurer and the claimant accept the amount.
Where you use it
Claims teams aim for fast, fair settlements. A settlement can be offered, negotiated, accepted or rejected, and settlement time is a key performance measure. The verb is 'settle': 'We settled the claim in ten days.'
Examples
The customer accepted our settlement offer of 85,000 lira.
Average settlement time for motor claims fell to 12 days.
Common phrases
settlement offer · reach a settlement · settle a claim · settlement amount · cash settlement
A situation in which insured property, especially a vehicle, is destroyed or so badly damaged that repairing it would cost more than it is worth.
Where you use it
Adjusters declare a vehicle a total loss, and the insurer then pays its market value instead of repairing it. In the UK people say the car was 'written off' or is 'a write-off'. The opposite is a 'partial loss'.
Examples
The car was declared a total loss after the flood, so we paid the customer its market value.
The adjuster said the repair bill would be higher than the car's value, so it's a total loss.
Common phrases
declare a total loss · constructive total loss · total loss payment · treated as a total loss
Deliberately lying to an insurance company or faking a loss in order to receive money that is not owed.
Where you use it
A crime that raises premiums for everyone. Typical examples are staged accidents, inflated claims and false medical bills. Insurers have special investigation units that detect and investigate suspected fraud.
Examples
The investigation unit found that the accident was staged, a clear case of insurance fraud.
Insurance fraud costs the industry billions every year.
First notice of loss: the first report a customer makes to the insurer after an accident, theft or damage, which starts the claims process.
Where you use it
Claims operations jargon, said letter by letter or as 'eff-nol'. Teams design FNOL channels such as apps, websites and call centres, and measure the time from FNOL to settlement. Good FNOL data speeds up the whole claim.
Examples
Over 60 percent of our FNOL now comes through the mobile app.
The FNOL call took twenty minutes because the customer had no accident report.
Common phrases
FNOL process · digital FNOL · FNOL call · FNOL to settlement
The insurer's right, after paying a claim, to take over the customer's legal rights and recover the money from the person who caused the loss.
Where you use it
Handled by recovery or subrogation teams. After paying a kasko claim, for example, the insurer recovers the money from the at-fault driver's traffic insurer. The amount recovered reduces the net cost of the claim.
Examples
After paying the claim, we started subrogation against the contractor who caused the flood.
Subrogation recoveries brought in 40 million lira last year.
Common phrases
subrogation claim · right of subrogation · subrogation recovery · waiver of subrogation
The process of studying a risk, deciding whether to insure it and setting the price and conditions of the policy.
Where you use it
The core technical job in an insurance company. Underwriting can be strict or flexible; departments set underwriting guidelines and measure underwriting profit. The verb is 'underwrite': 'We don't underwrite nightclubs.'
Examples
Underwriting asked for a fire safety report before they would quote the factory.
Strict underwriting helped us bring the loss ratio below 70 percent.
Common phrases
underwriting guidelines · underwriting profit · underwriting process · underwriting department · underwriting criteria
The chance that something bad, such as an accident, illness or damage, will happen; in insurance it can also mean the person or property being insured.
Where you use it
Used in two ways. In general, risks are assessed, reduced and transferred to an insurer. In underwriting talk, a risk is the thing insured: 'a good risk', 'a high-risk driver', 'we declined the risk'.
Examples
Insurance lets a small business transfer the risk of fire to the insurer.
A warehouse full of chemicals next to a petrol station is not an easy risk to place.
Common phrases
assess the risk · high-risk · transfer risk · accept a risk · decline a risk
An insurance professional who examines risks, decides whether to accept them and sets the premium, limits and conditions.
Where you use it
A key job title in insurance and reinsurance companies. Underwriters review proposals, ask for more information, refer large risks to senior colleagues and work closely with brokers. In Turkey the English title is usually kept.
Examples
The underwriter wants photos of the roof before she offers terms.
Our senior underwriter has authority to accept risks up to 50 million lira.
Common phrases
senior underwriter · underwriting authority · refer to the underwriter · property underwriter
A careful study of how likely a loss is and how serious it could be, used to decide whether and how to insure something.
Where you use it
Done by underwriters and risk engineers before quoting. A risk assessment may involve a site survey, medical questions or a driving record. The results are written up in reports and lead to recommendations such as installing sprinklers.
Examples
Our risk engineer will visit the plant next week to complete the risk assessment.
The risk assessment showed that the building has no fire escape on the upper floors.
Common phrases
carry out a risk assessment · risk assessment report · initial risk assessment · on-site risk assessment
The form a customer fills in when applying for insurance, giving the facts the insurer needs to assess the risk.
Where you use it
A British term; American English says 'application' or 'application form'. Customers complete and sign the proposal form, and wrong answers can lead the insurer to refuse a claim later. Many forms are now filled in online.
Examples
Please answer every question on the proposal form, including previous claims.
The proposal form didn't mention that the shop had a second floor.
Common phrases
complete a proposal form · sign the proposal form · questions on the proposal form · online proposal form
The record of all claims a person or company has made in past years, used by insurers to price and accept risks.
Where you use it
Underwriters often ask for three to five years of claims history before quoting. A clean history means lower premiums; a poor one can mean higher prices or refusal. British English also says 'claims record', and US brokers send 'loss runs'.
Examples
The fleet has a clean claims history, so we can offer a 10 percent discount.
Please send the last five years' claims history for all locations.
Common phrases
clean claims history · five-year claims history · poor claims history · review the claims history
Any information that would affect an insurer's decision to accept a risk or the premium it charges, and that the customer must therefore disclose.
Where you use it
A legal term in contracts and claims disputes. Customers must disclose material facts; if they fail to disclose or misrepresent one, the insurer may reduce the claim or avoid the policy, depending on the law.
Examples
Previous fires at the factory are a material fact and must be disclosed.
The insurer argued that the heart condition was a material fact the customer had hidden.
Common phrases
disclose a material fact · non-disclosure of a material fact · misrepresent a material fact
The risk that people become less careful, or act dishonestly, because they know they are insured.
Where you use it
A concept from economics used by underwriters and product designers. Deductibles and co-payments are partly designed to reduce moral hazard, because the customer still pays part of each loss.
Examples
A small deductible helps reduce moral hazard, as drivers still pay something for each claim.
Covering 100 percent of every cost creates moral hazard.
Common phrases
reduce moral hazard · create moral hazard · moral hazard problem · risk of moral hazard
The tendency for people with higher risk to be more likely to buy insurance, which causes losses if the insurer cannot tell the difference.
Where you use it
Discussed by actuaries and underwriters when they design products. Health questions, waiting periods and group schemes help protect against adverse selection. Also called 'anti-selection'.
Examples
Without health questions, the product would attract people who are already ill, a classic case of adverse selection.
Group health plans reduce adverse selection because everyone in the company joins.
Common phrases
risk of adverse selection · protect against adverse selection · adverse selection problem · anti-selection
The person or organisation named in a policy to receive the money, for example the family member who is paid when the insured person dies.
Where you use it
Most common in life and personal accident insurance. The policyholder names, adds or changes a beneficiary. In loan-linked policies, the bank is often the beneficiary up to the unpaid loan amount.
Examples
He named his wife and two children as beneficiaries of the life policy.
Please send a copy of the beneficiary's ID along with the death certificate.
Common phrases
name a beneficiary · change the beneficiary · primary beneficiary · beneficiary designation
Insurance that pays a sum of money to the named beneficiaries when the insured person dies, and in some products also builds up savings.
Where you use it
One of the two main branches of the industry, next to non-life. People take out life insurance to protect their family or to secure a loan. Banks sell it widely with mortgages and consumer loans.
Examples
The bank asked us to take out life insurance before approving the mortgage.
Life insurance premiums are lower if you buy a policy while you are young and healthy.
Usage note
British English also says 'life assurance', especially for long-term policies that always pay out at some point. Both mean 'hayat sigortası'.
Common phrases
life insurance policy · take out life insurance · group life insurance · life insurance company
Insurance that pays for medical costs such as doctor visits, tests, hospital stays and surgery, up to the limits in the policy.
Where you use it
Sold to individuals and, very often, to employers as group health insurance. Related words: network hospitals, inpatient and outpatient cover, waiting periods and pre-authorisation. In Turkey it adds to the cover of the state social security system.
Examples
Health insurance is one of the benefits we offer all full-time employees.
Check that the hospital is in your health insurance network before booking the surgery.
Common phrases
private health insurance · group health insurance · health insurance plan · health insurance network
A set time after a policy starts during which some benefits cannot yet be claimed, common in health and life insurance.
Where you use it
Explained in health policies for things like childbirth, planned surgery or certain illnesses. A waiting period applies, ends, or is waived in some group schemes. Customers often confuse it with the grace period.
Examples
There is a 12-month waiting period for maternity cover under this plan.
Because of the waiting period, the policy won't cover the knee surgery until next spring.
Common phrases
waiting period applies · 12-month waiting period · waive the waiting period · waiting period for maternity
A health problem that a person already had, or had symptoms of, before their health or life insurance started.
Where you use it
A sensitive topic in health insurance sales and claims. Insurers may exclude pre-existing conditions, cover them after a waiting period or charge an extra premium. Customers must declare them on the application.
Examples
Her asthma is a pre-existing condition, so it is excluded for the first two years.
Please list any pre-existing conditions, even if they are under control.
Common phrases
declare a pre-existing condition · pre-existing condition exclusion · cover pre-existing conditions · pre-existing medical condition
The part of a medical bill that the insured person pays each time they use a health service, either a fixed amount or a percentage.
Where you use it
Often shortened to 'copay' in the US. Plans with a co-payment usually have lower premiums. In strict US usage a fixed fee is a copay and a percentage share is 'coinsurance'; in Turkey both are usually called 'katılım payı'.
Examples
With this plan, you pay a 20 percent co-payment for outpatient visits.
The co-payment for each doctor visit is 300 lira.
Common phrases
pay a co-payment · co-payment per visit · plan with co-payment · fixed co-payment
Life insurance that covers a person for a fixed number of years and pays only if the person dies during that period; it has no savings value.
Where you use it
The simplest and cheapest form of life cover, often sold with loans for the length of the loan. Customers choose a term, such as 10 or 20 years, and a sum insured. Often just called 'term insurance' or 'term life'.
Examples
A 20-year term life insurance policy will protect your family until the children finish university.
Term life insurance is cheaper because it pays nothing if you outlive the policy.
Common phrases
term life insurance policy · 20-year term · decreasing term insurance · level term
Life insurance that lasts for the person's whole life as long as premiums are paid, and usually builds up a cash value over time.
Where you use it
More expensive than term cover because a payout is certain at some point. Popular in the US for estate planning and less common in the Turkish market. Also called 'permanent life insurance'.
Examples
Whole life insurance premiums stay the same for life but are much higher than term premiums.
He bought a whole life insurance policy to leave money to his grandchildren.
Usage note
British English often says 'whole of life insurance' or 'whole of life cover'.
Common phrases
whole life insurance policy · whole life cover · cash value · whole of life
The amount of money a policyholder receives if they cancel a savings-type life policy before it ends.
Where you use it
Appears in life insurance statements and in conversations about cancelling. Customers surrender a policy and receive its surrender value, which in the early years is usually less than the premiums paid. US English often says 'cash surrender value'.
Examples
If you cancel now, the surrender value will be lower than what you've paid in.
The annual statement shows the current surrender value of your policy.
Common phrases
surrender a policy · cash surrender value · surrender charge · early surrender
A financial product, often sold by life insurers, that turns a lump sum into regular payments, for example every month for the rest of a person's life.
Where you use it
Common in retirement planning in the UK and US. People buy an annuity with their pension savings, and the provider pays a monthly or yearly income. Types include lifetime, fixed-term and joint annuities.
Examples
At 65, she used part of her pension savings to buy a lifetime annuity.
Annuity rates improved when interest rates went up.
Usage note
In finance, 'annuity' can also mean any series of equal payments, such as loan instalments. In insurance it usually means a retirement income product.
Common phrases
buy an annuity · lifetime annuity · annuity income · annuity rate
Describing medical care, such as a doctor visit, test or minor procedure, where the patient does not stay in hospital overnight.
Where you use it
A basic split in health insurance: outpatient cover versus inpatient cover for hospital stays. Many cheaper plans cover inpatient treatment only. Also used as a noun for the patient: 'an outpatient'.
Examples
Your plan covers outpatient treatment up to ten visits a year.
We offer two options: inpatient only, or inpatient plus outpatient cover.
Insurance that pays a fixed amount if the insured person dies, is permanently disabled or needs medical treatment because of an accident.
Where you use it
Sold to individuals, to employers for their staff and as an add-on to car, travel or credit card products. It covers accidents only, not illness. Main benefits: accidental death, permanent disability and medical expenses. Often shortened to PA.
Examples
The company provides personal accident insurance for all field staff.
Personal accident insurance paid a lump sum after the fall left him with a permanent disability.
Common phrases
personal accident insurance policy · group personal accident · accidental death benefit · permanent disability cover
Insurance for a trip that covers medical emergencies abroad and often trip cancellation, lost luggage and travel delays.
Where you use it
Bought for a single trip or as an annual multi-trip policy. Schengen visa applicants must show travel medical insurance with at least 30,000 euros of cover. Assistance companies run the 24/7 emergency lines.
Examples
The consulate rejected the application because the travel insurance didn't cover the whole stay.
Our annual travel insurance covers all business trips under 30 days.
Private health insurance that works alongside a public health system and pays costs the state does not, such as the extra fees charged by private hospitals.
Where you use it
Also called 'complementary health insurance'. In Turkey, TSS is used at private hospitals that have an agreement with the Social Security Institution (SGK) and covers the difference fee. It is cheaper than full private cover and requires active SGK cover.
Examples
Supplementary health insurance lets you use private hospitals without paying the difference fee.
Many employers now offer supplementary health insurance instead of full private plans.
Common phrases
supplementary health insurance plan · complementary health insurance · contracted hospitals · difference fee
Insurance for a car and its driver that covers damage to other people and their property and, depending on the policy, damage to the car itself.
Where you use it
The everyday name for the biggest retail line. People in the British industry say 'motor insurance' and Americans say 'auto insurance'. In Turkey it is split into compulsory traffic insurance for third-party damage and optional kasko for your own car.
Examples
Car insurance prices rose sharply this year because spare parts became more expensive.
Is the car insurance in your name or your company's name?
Common phrases
car insurance policy · cheap car insurance · renew car insurance · car insurance quote
Car insurance that pays for damage to the insured vehicle itself, for example from a collision, theft, fire or natural events.
Where you use it
Often shortened to 'comp' or 'fully comp' in the UK. Customers choose comprehensive insurance for new or financed cars, and lenders usually require it. Related terms: deductible, no-claims bonus, total loss and courtesy car.
Examples
The bank won't release the car loan until you show proof of comprehensive insurance.
Comprehensive insurance paid for the repairs after the hailstorm damaged the roof of the car.
Usage note
In the UK, comprehensive insurance also includes third-party cover in one policy. In Turkey, kasko covers your own car, and compulsory traffic insurance for third parties is a separate policy.
Insurance that pays for injury or damage you cause to other people and their property, but not for damage to your own vehicle.
Where you use it
The minimum legal cover for driving in Turkey, the UK and most other countries. In the UK it is sold as 'third party only' or as 'third party, fire and theft'. Professionals also call it third-party liability insurance.
Examples
Third-party insurance is compulsory, so you cannot register the car without it.
The other driver's third-party insurance will pay for the damage to your bumper.
Common phrases
compulsory third-party insurance · third-party liability · third party only · third party, fire and theft
A discount on the premium given to policyholders who have not made a claim, which usually grows with each claim-free year.
Where you use it
Very common in motor insurance. Also called a 'no-claims discount' (NCD) or, in the US, a 'claims-free discount'. Drivers build up, protect or lose their bonus, and a single claim can reduce it at renewal.
Examples
With five years' no-claims bonus, your premium is almost half the standard price.
She paid for the small scratch herself to protect her no-claims bonus.
Common phrases
protect your no-claims bonus · lose your no-claims bonus · years of no-claims bonus · no-claims discount
A form describing a road accident, usually filled in and signed by the drivers involved or prepared by the police, and used to handle the claim.
Where you use it
Needed for most motor claims. Drivers fill in an accident report at the scene, including a sketch, and send it to their insurer. In Europe a standard form called the 'European Accident Statement' is used.
Examples
Both drivers signed the accident report and took photos before moving the cars.
We can't open the file until we receive a copy of the accident report.
Common phrases
fill in an accident report · sign the accident report · police accident report · accident report form
A service, often included in car insurance, that helps drivers whose vehicle breaks down or has an accident, for example by towing it or changing a tyre.
Where you use it
Usually provided by an assistance company on behalf of the insurer through a 24/7 phone line. Customers call roadside assistance for towing, jump-starts, fuel delivery or a locksmith. British speakers also say 'breakdown cover'.
Examples
Call roadside assistance and they'll send a tow truck within an hour.
The policy includes roadside assistance anywhere in Turkey.
An international certificate showing that a vehicle has the minimum third-party insurance required to drive in the countries of the Green Card system.
Where you use it
Needed by Turkish drivers taking their car to Europe and many neighbouring countries. Drivers get one from an insurer or agent and show it at the border. The system is run by a national bureau in each member country.
Examples
Don't forget to get a green card before driving to Bulgaria.
The border officer asked to see the green card and the vehicle registration.
Usage note
In the US, 'green card' usually means a permanent residence permit. In motor insurance it is the international insurance certificate.
Common phrases
green card insurance · show a green card · green card certificate · Green Card system
Insurance that covers buildings, equipment, stock and other physical assets against damage or loss from events such as fire, flood, storm and theft.
Where you use it
A broad line for both companies and households. Businesses buy property insurance for offices, factories and warehouses; home insurance is one type of it. Underwriters look at construction type, fire protection and location.
Examples
Our property insurance covers the warehouse, the machinery and the stock inside.
Property insurance rates in coastal areas have risen after several severe storms.
Insurance that pays for injury or damage you are legally responsible for causing to other people, including the legal costs.
Where you use it
Bought by businesses, professionals and individuals. Common types are public liability, product liability, employer's liability and professional liability. The key question in a claim is whether the insured is legally liable.
Examples
The restaurant's liability insurance paid for the customer's medical bills after she slipped on a wet floor.
Contractors must show proof of liability insurance before they start work on site.
Common phrases
public liability insurance · professional liability insurance · liability insurance cover · third-party liability
Insurance for a house or flat and the belongings inside it against risks such as fire, water damage, theft and storms.
Where you use it
Usually has two parts: buildings cover for the structure and contents cover for furniture and belongings. Tenants normally buy contents only. American English says 'homeowners insurance'. In Turkey it is often sold together with compulsory earthquake insurance.
Examples
Our home insurance covered the damage when the washing machine flooded the kitchen.
Many banks ask for home insurance before they release a mortgage.
Common phrases
home insurance policy · buildings and contents · home insurance quote · renew home insurance
Insurance that pays for damage to buildings, equipment and stock caused by fire and often by related events such as lightning and explosion.
Where you use it
One of the oldest lines of insurance. In Turkey a fire policy is the base of most commercial property cover, with extra perils such as earthquake, flood and storm added to it. Underwriters check sprinklers, alarms and fire separation.
Examples
The fire insurance policy was extended to include earthquake and flood cover.
Fire insurance premiums are lower for buildings with automatic sprinklers.
Common phrases
fire insurance policy · fire and allied perils · fire insurance premium · fire cover
Insurance that pays for damage to buildings and contents caused by an earthquake and by events that follow it, such as fire or landslide.
Where you use it
Essential vocabulary in Turkey. Compulsory earthquake insurance for homes is provided through DASK, known in English as the Turkish Catastrophe Insurance Pool (TCIP). Its cover has an upper limit, so owners can buy extra earthquake cover from private insurers.
Examples
Without valid earthquake insurance, you cannot complete the title deed transfer.
The compulsory earthquake insurance covers the building, but the furniture needs separate contents cover.
Physical harm to a person, such as injury, illness or death, as opposed to damage to property.
Where you use it
A standard term in liability and motor insurance, often shortened to BI. Policies set separate limits for bodily injury and property damage. Bodily injury claims are usually larger and take longer to settle.
Examples
The accident caused no bodily injury, only damage to the two cars.
Bodily injury claims from the construction site may take years to settle.
Insurance that pays for lost profit and continuing costs when a business has to stop or slow down because of insured damage, such as a fire.
Where you use it
Usually bought together with property insurance and often shortened to BI. The insurer and client agree an indemnity period, such as 12 or 24 months. Claims require accounts showing what the business would have earned.
Examples
Business interruption cover paid the staff salaries while the factory was rebuilt.
Many small firms don't buy business interruption insurance until it is too late.
Usage note
BI is used for both business interruption and bodily injury, so check the context.
Common phrases
business interruption insurance · business interruption cover · indemnity period · loss of profits
Insurance bought by insurance companies to pass part of their risks to another company, so that very large or numerous losses do not threaten them.
Where you use it
Often explained as 'insurance for insurers'. Insurers buy or place reinsurance, usually through reinsurance brokers, and renew most programmes on fixed dates such as 1 January. Key words: treaty, facultative, retention, cede.
Examples
Without reinsurance, a single major earthquake could wipe out a local insurer's capital.
Reinsurance prices went up at the January renewals after a year of heavy catastrophe losses.
A company that insures insurance companies, accepting part of their risks in return for part of the premium.
Where you use it
The global market is led by large groups based in Europe, Bermuda and the US. Reinsurers accept, decline or lead a share of a programme, and their financial strength rating matters to the insurers that buy from them.
Examples
Three European reinsurers share the earthquake programme.
The lead reinsurer agreed to the new terms, and the others followed.
Common phrases
lead reinsurer · global reinsurer · reinsurer's share · reinsurer rating
An insurance company that passes, or cedes, part of its risks to a reinsurer. It is also called the cedant.
Where you use it
Used in reinsurance contracts and meetings. The ceding company cedes premiums and claims to reinsurers under its treaties and keeps its retention. The verb is 'cede' and the noun for the transfer is 'cession'.
Examples
The ceding company keeps 30 percent of each risk and cedes the rest to reinsurers.
Reinsurers analysed the ceding company's claims data before renewing the treaty.
A reinsurance agreement that automatically covers a whole group of an insurer's policies, such as all its property business, for a set period.
Where you use it
The main way insurers buy reinsurance. Treaties are negotiated, placed and renewed every year, often on 1 January. They can be proportional, such as quota share, or non-proportional, such as excess of loss.
Examples
Under our treaty reinsurance, every new fire policy is covered automatically.
The treaty reinsurance renewal was difficult this year because of last year's flood losses.
Reinsurance arranged separately for one specific risk, such as a large factory, where the reinsurer can accept or decline each case.
Where you use it
Used for risks that are too large or unusual for the treaty. Often shortened to 'fac': 'We need fac support for this refinery.' Underwriters send fac submissions to reinsurers and wait for their shares.
Examples
The power plant exceeded our treaty limit, so we placed it with facultative reinsurance.
Facultative reinsurance gives the reinsurer a chance to study each risk in detail.
Common phrases
facultative placement · fac support · facultative capacity · buy facultative cover
The part of a risk or loss that an insurer keeps for its own account instead of passing it to reinsurers.
Where you use it
A key decision when buying reinsurance: a higher retention means paying less reinsurance premium but carrying more risk. In excess of loss treaties it works like a deductible. In sales, the same word means keeping customers ('customer retention').
Examples
We increased our retention to 50 million lira to reduce reinsurance costs.
Any loss above the retention is paid by the reinsurers.
Common phrases
net retention · increase the retention · retention level · retention limit
A type of reinsurance in which the reinsurer pays the part of a loss above an agreed amount, up to an upper limit.
Where you use it
The main non-proportional form, written XL or XoL. Brokers describe it in layers: '40 million xs 10 million' means 40 million of cover above a 10 million retention. Catastrophe programmes are usually excess of loss.
Examples
Our excess of loss treaty pays losses above 20 million lira per event.
The catastrophe cover is arranged in three layers of excess of loss.
Usage note
Do not confuse it with 'excess', the British word for the deductible on a customer's policy.
Common phrases
excess of loss treaty · catastrophe excess of loss · excess of loss layer · per-risk excess of loss
A proportional reinsurance arrangement in which the insurer and reinsurer share the premiums and claims of every policy in a fixed percentage.
Where you use it
Simple and common, especially for new companies or new lines. In a 40 percent quota share, the reinsurer takes 40 percent of each premium, pays 40 percent of each claim and usually pays a ceding commission. Often written 'QS'.
Examples
The new health portfolio is protected by a 50 percent quota share.
Under the quota share, the reinsurer pays a 30 percent ceding commission.
Common phrases
quota share treaty · 50 percent quota share · quota share reinsurance · cede under the quota share
An independent intermediary who acts for the customer, compares offers from different insurance companies and helps arrange the most suitable policy.
Where you use it
Brokers place risks with insurers, negotiate terms and support clients with claims. Large companies use brokers for property, liability and employee benefits. A broker works for the client, while an agent usually represents the insurer.
Examples
Our broker collected quotes from five insurers and recommended the second one.
The broker is negotiating a lower deductible for the factory policy.
Common phrases
insurance broker · use a broker · through a broker · broker fee · broker commission
A person or business that sells policies on behalf of one or more insurance companies and earns a commission on each sale.
Where you use it
The most familiar face of insurance for retail customers. Agents issue policies, collect premiums and follow up renewals; some work for one insurer, others for several. In Turkey, agencies are the largest sales channel for non-life insurance.
Examples
Our insurance agent reminded us that the car policy expires next week.
She has worked as an insurance agent for three different companies.
Usage note
In English, 'agency' is usually the business and 'agent' the person. Turkish 'acente' covers both.
A payment, usually a percentage of the premium, that an insurance company pays to an agent or broker for selling a policy.
Where you use it
Agents earn or receive commission, and insurers set commission rates for each product. In many countries, rules require commission to be disclosed to customers. In reinsurance, the reinsurer pays a 'ceding commission' to the insurer.
Examples
The agent earns a 15 percent commission on every new car policy.
Commission rates for life products are higher in the first year.
A person or firm, such as an agent or broker, that stands between customers and insurance companies and arranges policies.
Where you use it
A formal umbrella term used in regulation, reports and contracts. Regulators license and supervise intermediaries, and insurers decide how much business to write through intermediaries and how much through direct channels.
Examples
About 70 percent of our premiums come through intermediaries.
The regulator published new conduct rules for insurance intermediaries.
The sale of insurance products through banks, usually to the bank's own customers at branches or through digital banking.
Where you use it
A major distribution channel in Turkey and much of Europe, especially for life insurance and loan-linked policies. Banks act as agents of one or more insurers, and the insurer and the bank often belong to the same group.
Examples
Bancassurance accounts for most of our life insurance sales.
The bancassurance agreement gives the insurer access to the bank's 900 branches.
All types of insurance other than life insurance, such as motor, property, liability, health and travel insurance.
Where you use it
A standard way to divide the market, used in statistics, licences and company names. In the UK and Europe it is also called 'general insurance', and in the US 'property and casualty'. In Turkey health insurance is reported as a non-life branch.
Examples
Non-life insurance premiums grew faster than life premiums last year.
She moved from a non-life insurance company to a life insurer.
Property and casualty: the US term for insurance that protects property and covers legal liability, such as car, home and business insurance.
Where you use it
Used in US industry news, job titles and reports: P&C insurer, P&C underwriter, P&C market. 'Casualty' here means liability insurance, not an injured person. British and European speakers say 'general insurance' or 'non-life'.
Examples
She has ten years' experience as a P&C underwriter in New York.
P&C insurers reported higher profits as car repair costs eased.
Claims costs divided by earned premiums, shown as a percentage; it shows how much of the premium was spent on paying losses.
Where you use it
The most watched figure in underwriting meetings. A loss ratio rises, improves or deteriorates; a 65 percent loss ratio means 65 of every 100 lira of premium went to claims. Each line of business and each agent has its own loss ratio.
Examples
The loss ratio on the motor book improved from 82 to 71 percent.
Agents with a loss ratio above 100 percent will be reviewed.
Common phrases
loss ratio improves · high loss ratio · target loss ratio · incurred loss ratio
The loss ratio plus the expense ratio. Below 100 percent means the insurer made an underwriting profit; above 100 percent means an underwriting loss.
Where you use it
The headline figure in non-life results and analyst calls. Insurers report, target and try to bring down their combined ratio. A company can still be profitable above 100 percent if its investment income is high.
Examples
Our combined ratio fell to 96 percent, so we made a profit from underwriting.
Analysts asked why the combined ratio was above 100 percent for the second year.
Common phrases
combined ratio of · target combined ratio · improve the combined ratio · combined ratio above 100
Money an insurer sets aside on its balance sheet to pay claims and other obligations it expects in the future.
Where you use it
Claims handlers set and update a reserve on each file, and actuaries check the total. Types include outstanding claims reserves, unearned premium reserves and IBNR (incurred but not reported). Reserves are increased, released or strengthened.
Examples
Please set a reserve of 500,000 lira on the file until the adjuster's report arrives.
The company strengthened its reserves for bodily injury claims.
Usage note
In insurance accounts, 'reserves' usually means technical provisions, which are liabilities. The Turkish word is 'karşılık', not 'yedek', which refers to reserves in equity.
Common phrases
set a reserve · claims reserve · reserve release · IBNR reserve · reserve strengthening
An insurer's ability to pay all its future claims and debts, measured by comparing its capital with the amount regulators require.
Where you use it
A central idea in insurance regulation. Companies report a solvency ratio; in the EU the rules are known as Solvency II. If solvency falls below the required level, regulators can demand new capital or limit new business. The adjective is 'solvent'.
Examples
Our solvency ratio stands at 180 percent, well above the regulatory minimum.
The regulator asked for a capital increase after the company's solvency fell below the limit.
Common phrases
solvency ratio · Solvency II · solvency capital requirement · solvency position
The total premium from all policies an insurer writes in a period, before the share passed to reinsurers is deducted.
Where you use it
The main size measure in market rankings, often shortened to GWP. Companies grow, report and are ranked by GWP; 'net written premium' is what remains after reinsurance. Turkish professionals often call it 'üretim' (production).
Examples
Gross written premium rose 45 percent, but most of the growth came from inflation.
By gross written premium, the company is now the third largest non-life insurer in the market.
Common phrases
gross written premium growth · net written premium · GWP · earned premium
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn insurance vocabulary
Learn the parties and their roles first: insurer, policyholder, insured, beneficiary, agent, broker and reinsurer. Many misunderstandings in emails come from mixing them up.
Read real texts from the field: compare the English and Turkish versions of a policy wording, read the annual reports of Turkish insurers (many publish them in English) and look through reinsurance market reports. Seeing the same clause in both languages fixes the terms in your memory.
Learn the verbs that go with each noun: take out a policy, renew a policy, file a claim, settle a claim, cede a risk, apply a loading and set a reserve.
Notice US and UK differences: deductible and excess, claims adjuster and loss adjuster, auto and motor insurance, coverage and cover, application and proposal form.
Find the English counterpart of the legal Turkish words used in policies: riziko (peril), lehtar (beneficiary), zeyilname (endorsement), rücu (subrogation) and muallak hasar karşılığı (outstanding claims reserve).
Frequently asked questions
What is the difference between the policyholder, the insured and the beneficiary?
The policyholder owns the policy and pays the premium (sigorta ettiren). The insured is the person or property whose risk is covered (sigortalı). The beneficiary receives the money under a life or accident policy (lehtar). In a personal life policy, the policyholder and the insured are often the same person and the beneficiary is a family member; in group health insurance, the employer is the policyholder and each employee is an insured.
How do I say 'kasko' and 'trafik sigortası' in English?
Trafik sigortası is compulsory third-party motor insurance (third-party liability insurance). Kasko is closest to comprehensive or own-damage cover. Be careful: in the UK a comprehensive policy also includes third-party cover, while in Turkey kasko and traffic insurance are two separate policies. When in doubt, explain it: 'kasko, which covers damage to your own car'.
Deductible or excess: which word should I use?
They mean the same thing: the part of a loss that the customer pays. 'Deductible' is American and is also common in international business; 'excess' is British. Choose one according to your reader and use it consistently in the same document. In reinsurance, 'excess of loss' is a different idea, so do not shorten it to 'excess'.
Insure, ensure or assure: what is the difference?
'Insure' is about insurance: 'We insure the building against fire.' 'Ensure' means to make sure: 'Please ensure the form is signed.' 'Assure' means to tell someone something confidently to remove their doubt: 'I can assure you that your claim is being handled.' British English also uses 'assurance' in 'life assurance'.
Do Turkish insurance professionals use the English terms?
Many of them, yes. Underwriting, broker, treaty, fac, quota share, loss ratio, combined ratio and FNOL are often said in English in Turkish offices, especially in reinsurance and corporate business. Policies, regulations and customer letters use Turkish terms such as 'risk kabul', 'hasar/prim oranı' and 'muafiyet'. Knowing both versions helps you move easily between colleagues, customers and international partners.
