AzRe © 2008

Ana səhifə

İngilis dili

Established

Glossary - B

BANCASSURANCE
partnership between a bank and an insurance company for the purpose of selling insurance products through the banking partner's branches. The link between the insurer and the bank is often characterised by an equity participation or a long-term strategic cooperation between the two parties

BASE PRMIUM
The reinsured company's premiums (written or earned) to which the reinsurance premium rate is applied to produce the reinsurance premium. Also known as Subject Premium, Premium Base, and Underlying Premium

BORDEREAU(X)
Furnished periodically by the reinsured, a detailed report of insurance premiums or losses affected by reinsurance. A premium bordereau contains a detailed list of policies (or bonds) reinsured under a reinsurance treaty during the reporting period, reflecting such information as the name and address of the primary insured, the amount and location of the risk, the effective and termination dates of the primary insurance, the amount reinsured and the reinsurance premium applicable thereto. A loss bordereau contains a detailed list of claims and claims expenses outstanding and paid by the reinsured during the reporting period, reflecting the amount of reinsurance indemnity applicable thereto. Bordereau reporting is primarily applicable to pro rata reinsurance arrangements and to a- large extent has been supplanted by summary reporting

BROKERAGE
Also known as �broker�s commission�. The commission which is payable to a broker for placing an insurance or reinsurance contract with an insurer or a reinsurer.

BUFFER LAYER
Used in casualty insurance to describe a stratum of coverage between the maximum policy limit which the primary underwriter will write and the minimum deductible over which the excess or umbrella insurer will cover.

BURNING COST
A method of calculating premiums for non-proportional reinsurance (excess-of-loss). It is based on the ratio of claims incurred to the ceding company�s net premium.. The burning cost method requires many years� statistics of losses. Used to analyze past reinsurance experience or to project the future.