Category: P

The way premium on property and causality insurance is calculated. Premium loading factors are not used in the process. AKA standard risk. Refer to speculative risk.

An economic term related to goods or services that does not generate any external entities. The producer or consumer of the goods or service will bear all of the costs and receive all of the associated benefits.

An economic term related to goods and services that provides services and benefit to the general public. The goods and services specified are for the public good.

An economic concept of the rate of theorertical interest That rises in a market of loanable funds. In this situation a perfect rate of competition and certainty applies. That is, there is no risk involved.

A economic system that shows little interference fromn a govenment body. The system is run by big business and revolves around money and capital assets.

An element that does not change its weight or mass when it is turned into the finished product. It contains no impurities that are burnt off or removed so the weight will remain the same.

An insurer owned by a single company. They write insurance for that company only. While easy to manage it may be more risky. AKA single parent captive. Refer to agency captive, captive, group captive, protected cell company, rentacaptive, senior captive

Income that is received from the use of a resource. During this use, this product is not destroyed by consumers. The income bears no relation or response to the price of the product.

A swap transaction that allows an insurer to diversify their portfolio by exchanging uncorrelated catastrophic hazards. Refer to catastrophe reinsurance swap.

A situation that has arisen where there is no chance of gain but there is a chance of a loss. There will never be a chance for gain but you may not lose either.