Okuzeka
Insurance vocabulary · Premiums & Pricing

Loading

Meaning in insurance, with examples

/ˈloʊdɪŋ/nounAdvanced term

In insurance, loading means: 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.

In Turkish: sürprim, ek prim, prim artırımı

How it is used

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.

Example sentences

  1. Because he works on offshore oil platforms, the underwriter applied a loading of 30 percent.

  2. The policy was accepted with a loading for high blood pressure.

Common collocations

  • apply a loading
  • premium loading
  • medical loading
  • loading for
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
  • underwritingThe process of studying a risk, deciding whether to insure it and setting the price and conditions of the policy.
  • pre-existing conditionA health problem that a person already had, or had symptoms of, before their health or life insurance started.
  • actuaryA specialist who uses statistics and mathematics to measure risk, calculate premiums and estimate how much money an insurer must keep for future claims.

More terms: Premiums & Pricing

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.