2022-23 SGI CANADA Annual Report
Loss ratio (Claims ratio)
Minimum Capital Test (MCT)
Net premiums earned (NPE)
Net premiums written (NPW)
Net risk ratio (NRR)
Premium
Premium tax
Property insurance
Redundancy & deficiency
Reinsurance
Reinsurer
Underwriting
Claims incurred net of reinsurance expressed as a percentage of net premiums
earned for a specified period of time.
A solvency ratio used by regulators to assess a company's financial strength.
This ratio measures capital requirements in relation to the degree of risk
undertaken by a particular company.
The portion of net premiums written that is recognized for accounting
purposes as revenue during a period.
Gross premiums written for a given period of time less premiums ceded to
reinsurers during such period.
A ratio of net premiums written to equity. This ratio indicates the ability of a
company's financial resources to withstand adverse underwriting results. The
regulatory guideline is a ratio of 3.0 or lower.
The dollars that a policyholder pays today to insure a specific set of risk(s). In
theory, this reflects the current value of the claims that a pool of policyholders
can be expected to make in the future, as well as the costs of administering
those potential claims.
A tax collected by insurance companies from policyholders and paid to various
provincial and territorial governments. It is calculated as a percentage of gross
premiums written.
One of the three main groups of insurance products (the others are life
insurance and casualty insurance). This type of insurance provides coverage to
a policyholder for an insurable interest in tangible property for property loss,
damage or loss of use.
Claim reserves are constantly re-evaluated. An increase in a reserve from the
original estimate is a deficiency, while a decrease to the original reserve is
called a redundancy.
In its simplest form, insurance for an insurance company. It is an agreement
where the reinsurer agrees to indemnify the ceding company against all or
a portion of the insurance or reinsurance risk underwritten by the ceding
company under one or more policies.
A company that purchases the cedant risk in the reinsurance contract.
The process of reviewing applications submitted for insurance coverage,
deciding whether to insure all or part of the coverage requested and
calculating the related premium for the coverage offered.
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