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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Insurance Score


Synonyms:insurance credit score, insurance risk score, underwriting risk score, underwriting score
Filed Under: financial-banking, insurance
Tags: banking, insurance
 

Definition of insurance score

insurance score
1. A metric used by insurance companies to assess risk and deduce the likelihood that a claim will need to be paid out. Insurance companies consider insurance scores, amongst other factors, when making underwriting decisions and determining insurance premiums. Insurance scores are proprietary and the methodology used in their calculation is considered a trade secret.

Related Terms and Acronyms:

  • account current (AC)   A ledger summarizing the performance of each agent employed by an insurance company.
      ➥  A monthly or yearly ledger style report provided by an insurer to an insurance agent detailing policies, premiums, commissions, cancellations, and endorsements.
  • actuarial table   A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • actuary   An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
  • insurance (insur)   An arrangement where one party provides financial protection to another party for specific damages or losses.
  • insurance policy   A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • mortality rate   A measurement of how many people in a particular population set and in a particular period of time die.
  • private-passenger auto insurance policyholder risk profile   A system for sorting drivers by their driving records and how likely they are to cause a loss for an insurance company.
  • survival analysis   A statistical analysis of how likely someone or something will survive to a set date.
  • underwriting risk   The total amount of risk an entity takes on from underwriting something.
  • yearly probability of living   The likelihood that an individual of a certain age and gender will still be alive after a year has passed.

More Related Terms and Acronyms

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