Glossary

Premiums net of retrocession

Gross premiums less the portion of premiums paid for retrocession. As opposed to gross premiums.

Primary insurer

An insurance company that issues insurance contracts to the public generally or to certain non-insurance entities.

Probable Maximum Loss

The estimated anticipated maximum loss, taking into account ceding company and contract limits, caused by a single catastrophe affecting a broad contiguous geographic area, such as that caused by a hurricane or earthquake of such a magnitude that it is expected to recur once during a given return period, such as every 50, 100 or 200 years.

Property & casualty (p&c) classes

All insurance classes other than Life.

Property insurance

Insurance that provides coverage to a person with an insurable interest in tangible property for that person's property loss, damage or loss of use.

Proportional (pro rata) reinsurance

Reinsurer's share of claims carried by the insurer in proportion to its share of premiums received. Proportional reinsurance is generally written as a quota share of business or as surplus reinsurance.

Pure premium

Premium equal to the technical estimate of the risk covered by the insurer.

Rate

Scale showing the various premium rates applied to risks belonging to a given category of insurance (as in motor rates, fire rates).

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