Terminology - Business Insurance
Acronyms and technical terms in the business insurance sector. Each entry provides the expansion and operational meaning for the AI/RAG developer.
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IVASS
Istituto per la Vigilanza sulle Assicurazioni. Italian Insurance Supervisory Authority. Issues regulations, authorises companies, manages the intermediaries' register (RUI), handles consumer complaints, and supervises market conduct. Operates under Banca d'Italia oversight. See: ivass.it.
EIOPA
European Insurance and Occupational Pensions Authority. EU supervisory authority for insurance and occupational pensions. Issues Solvency II implementing guidelines, coordinates national supervisory authorities (NCAs), publishes market data and stress test results. See: eiopa.europa.eu.
ANIA
Associazione Nazionale fra le Imprese Assicuratrici. Italian national insurance industry association. Publishes sector statistics, annual motor liability data, claims data, and regulatory position papers.
SCR
Solvency Capital Requirement. Annual solvency capital requirement calculated by insurers under the Solvency II standard formula or an internally approved model. Supervisory intervention triggered below this level.
MCR
Minimum Capital Requirement. Absolute minimum capital threshold equal to 25-45% of SCR, with monetary floors by line of business (life/non-life/reinsurance). Breach results in withdrawal of authorisation.
ORSA
Own Risk and Solvency Assessment. Annual self-assessment of risk and solvency conducted by the insurer. Pillar 2 requirement under Solvency II; evaluates capital adequacy relative to the risk profile.
RUI
Registro Unico Intermediari. The unified registry of authorised insurance intermediaries maintained by IVASS: agents, brokers, direct producers, and collaborators. Publicly searchable on ivass.it.
CGA
Condizioni Generali di Assicurazione. General Conditions of Insurance. Standard contractual document attached to the policy defining coverages, exclusions, obligations, claims procedures. Subject to IVASS approval for mandatory lines.
BI
Business Interruption. Insurance coverage indemnifying loss of gross profit and fixed costs during the business shutdown period following a covered material damage (fire, flood, machinery breakdown).
D&O
Directors and Officers Liability. Policy protecting company directors and officers from legal actions for alleged management negligence or errors. Covers legal expenses and damages up to the policy limit.
RC / GL
Responsabilità Civile / General Liability. Coverage for unintentional damage caused to third parties: General Liability (business operations), Products Liability (defective products), Professional Liability (professional errors), Employers' Liability (employee accidents).
CAR
Contractor's All Risks. All-risks construction policy covering damage to works under construction, site plant and equipment, and third-party liability during construction works. Standard in FIDIC contracts.
IBNR
Incurred But Not Reported. Claims reserve for events that have occurred but not yet been reported to the insurer. Estimated actuarially using Chain-Ladder or Bornhuetter-Ferguson methods.
ICC
Institute Cargo Clauses. Lloyd's Market standard clauses for marine cargo coverage: ICC A (all risks), ICC B (named perils, broad), ICC C (named perils, basic).
LR
Loss Ratio. Percentage ratio of incurred claims (paid + reserved) to earned premiums. A high LR indicates a technically unprofitable portfolio; critical threshold typically 65-70% for non-life lines.
ER
Expense Ratio. Percentage ratio of management expenses (acquisition + administration) to earned premiums. Added to LR gives the Combined Ratio.
CR
Combined Ratio. LR + ER. Synthetic technical profitability indicator: CR < 100% = technical profitability; CR > 100% = technical loss covered by investment income.
SREP
Supervisory Review and Evaluation Process. Supervisory review process by which IVASS annually assesses the risk profile and financial soundness of insurance companies under Solvency II Pillar 2.
IDD
Insurance Distribution Directive. EU Directive 2016/97 regulating insurance distribution: intermediary training requirements, POG (Product Oversight and Governance), pre-contractual information (IPID).
IPID
Insurance Product Information Document. Standardised pre-contractual information document (A4 format, max 2 pages) introduced by IDD for non-life products. Summarises coverages, key exclusions, premiums, and complaints procedure.
POG
Product Oversight and Governance. IDD/EIOPA regulatory framework requiring insurers to define the target market for products, monitor product performance, and update products when no longer suitable for their target market.
MTPL
Motor Third-Party Liability. Compulsory motor insurance for all motor vehicles (Directive 2009/103/EC). Covers damage to third parties caused by vehicle circulation.
SFCR
Solvency and Financial Condition Report. Annual public disclosure report produced by each insurance company under Solvency II Pillar 3. Available on the insurer's website and EIOPA's register.
QRT
Quantitative Reporting Templates. Standardised EIOPA reporting templates submitted by insurers to supervisory authorities in XBRL format. Cover SCR, MCR, technical provisions, investments, and reinsurance data.
XBRL
eXtensible Business Reporting Language. Machine-readable reporting format used for Solvency II QRT submissions to EIOPA and national supervisory authorities. EIOPA taxonomy updated annually.
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Sources: IVASS (ivass.it), EIOPA (eiopa.europa.eu), ANIA (ania.it), EUR-Lex (eur-lex.europa.eu).