Actuarial Acronyms, A-Z

Dictionary on Actuarial Science – A comprehensive list of actuarial acronyms and abbreviations.


AAE  |  Actuarial Association of Europe
ACL  |  Audit Command Language
ABS  |  Asset-Backed Securities
ADA  |  Audit Data Analytics
ADB  |  Accidental Death BenefitA/E  |  Actual-to-Expected
ADC  |  Adverse Development Cover
AFH  |  Actuarial Function Holder
AFR  |  Actuarial Function Report
AFS  |  Available for Sale
AIF  |  Alternative Investment Fund
AIPT  |  Annually Increasing Premium Term Policy
AGM  |  Annual General Meeting
ALAE  |  Allocated Loss Adjustment Expense
ALM  |  Asset-Liability Management
AMC  |  Annual Management Charge
AML  |  Anti-Money Laundering
ANAV  |  Adjusted Net Asset Value
AOF  |  Ancillary Own Funds
AOF  |  Available Own Funds
APL  |  Automatic Premium Loan
ART  |  Annual Reporting Templates
ASB  |  Auditing Standards Board
AUM  |  Assets under Management
AUP  |  Agreed-upon Procedures
AURR  |  Additional Unexpired Risk Reserve
AY  |  Accident Year
AYLWA  |  All Year Loss Weighted Average


BBA  |  Building Block Approach
BBNI  |  Bound but Not Incepted
BC  |  Basis for Conclusion
BDX  |  Bordeaux
BE  |  Best Estimate
BEL  |  Best Estimate Liability
BF  |  Bornhuetter-Furgesson
BoD  |  Board of Directors
BOF  |  Basic Own Funds
BS  |  Balance Sheet
BSCR  |  Basic SCR
BOY  |  Beginning of Year


CA  |  Chief Actuary
CAGR  |  Compounded Annual Growth Rate
CAT  |  Catastrophe (Risk)
CB  |  Contract Boundaries
CBI  |  Contingent Business Interruption
CBO  |  Collateralized Bond Obligations
CDA  |  CounterParty Default Adjustment
CDO  |  Collateralised Debt Obligation
CDR  |  CounterParty Default Risk
CDS  |  Credit Default Swap
CERA  |  Chartered Enterprise Risk Actuary
CF  |  Cash-Flow
CFD  |  Contract For Difference
CHE  |  Claims Handling Expenses
CI  |  Critical Illness
CL  |  Chain-Ladder
CLR  |  Combined Loss Ratio
CMO  |  Collateralized Mortgage Obligations 
CoC  |  Cost of Capital
COG  |  Cost of Guarantees
CPA  |  Certified Public Auditor
CPD  |  Continuing Professional Development
CPI  |  Consumer Price Index
CR  |  Combined Ratio
CRD  |  Capital Requirements Directive
CSM  |  Contractual Service Margin
CQS  |  Credit Quality Step
CT  |  Core Technical
CUO  |  Chief Underwriting Officer
CWP  |  Conventional With-Profits
CY/PY  |  Current Year/Previous Year


DAC  |  Deferred Acquisition Cost
DAX  |  German Stock Index
DCF  |  Discounted Cash Flow
DBO  |  Defined Benefit Obligation
DHA  |  Daily Hospital Allowance
D&I  |  Design & Impementation
DOP  |  Date of Birth
DPF  |  Discretionary Participation Feature
DTA |  Deferred Tax Asset
DTL  |  Deferred Tax Liability


EAoL  |  Excess of Assets over Liabilities
EBIT  |  Earnings Before Interest and Taxes
EBR  |  Equity Backing Ratio
EBS  |  Economic Balance Sheet
EEA  |  European Economic Area
EFRAG  |  European Financial Reporting Advisory Group
EIOPA  |  European Insurance and Occupational Pensions Authority
EL  |  Employers Liability
EML  |  Estimated Maximum Loss
ENID  |  Events Not In Data
EOF  |  Eligible Own Funds
EOY  |  End of Year
EP  |  Earned Premium
EPI  | Expected Premium Income
EPIFP  |  Expected Profit in Future Premiums

EQ  |  Earthquake
ERM  |  Enterprise Risk Management
ERP  |  Equity Risk Premium
ESA  |  European Supervisory Authorities
ESG  |  Economic Scenario Generator

ETF  |  Exchange Traded Funds
EUC  |  End-User Control
EV  |  Embedded Value


FC  |  Forecast
FFA  |  Fellow of the Institute and Faculty of Actuaries
FIA  |  Fellow of the Institute and Faculty of Actuaries
FIFO  |  First In, First Out
FLAOR  |  Forward-Looking Assessment of Own Risk
FV |  Fair Value
FV  |  Future Value
FVOCI  |  Fair Value through Other Comprehensive Income
FX  |  Foreign Exchange Rate
FY  |  Financial Year


GAAP  |  General Accepted Accounting Principles
GEP  |  Gross Earned Premium
GIM  |  Group Internal Model
GITC  |  General IT Controls
GL  |  General Ledger
GMAB  |  Guaranteed Minimum Accumulation Benefit
GMDB  |  Guaranteed Minimum Death Benefit
GMxB  |  Guaranteed Minimum … Benefit
GTPL  |  General Third Party Liability
GWP  |  Gross Written Premium


HRG  |  Homogenous Risk Groups
HTM  |  Held to Maturity


IAA  |  International Actuarial Association
IAS  |  International Accounting Standard
IBA  |  Information Being Audited
IBIP  |  Insurance Based Investment Product
IBNR  | Incurred But not Reported
IBNER  | Incurred But not Enough Reported
ICS  | Internal Control System
IDD  |  Insurance Distribution Directive
IFoA  |  Institute and Faculty of Actuaries
IFRS  |  International Financial Reporting Standards
IGT  |  Intra-group Transacations
IL  |  Insurance-Linked
ILR  |  Incremental Loss-Ratio
ILQP  |  Illiquidity premium
IM  |  Internal Model
IPE  |  Information Produced by Entity
IPID  | Insurance Product Information Document
IPO  |  Initial Public Offering
IR  |  Investor Relations
IRM  |  Integrated Risk Management
IRP  |  Illiquidity Risk Premium
ISA  |  International Standards on Auditing
ISAP  |  International Standard of Actuarial Practice
ISIN  |  International Securities Identification Number


JV  |  Joint Venture


KAM  |  Key Audit Matter
KID  |  Key Information Document
KoM  |  Kick-off Meeting
KYC  |  Know Your Customer


LAE  |  Loss Adjustment Expenses
LADT  |  Loss Absorbing Capacity of Deferred Taxes
LAT  |  Liability Adequacy Test
L&D  |  Learning & Development
LDF  |  Loss Development Factor
LIBOR  |  London Interbank Offered Rate
LIC  |  Liability for Incurred Claims
LIFO  |  Last In, First Out 
LLP  |  Last Liquid Point
LoB  |  Lines of Business
LOD  |  Losses Occurring During
LOU  |  Legally Obliged Unincepted
L/R  |  Loss-Ratio
LRC  |  Liability for Remaining Coverage
LT  |  Long Term
LTBP  |  Long Term Business Provisions
LTC  |  Long Term Care


M&A  |   Merger & Acquisition
MBS  |  Mortgage-Backed Securities
MCEV  |  Market Consistent Embedded Value
MCR  |  Minimum Capital Requirement
MF  |  Mutual Funds
MfAD  |  Margin for Adverse Deviation
MIFID  |  Markets in Financial Instruments Directive
MIP  |  Mortgage Insurance Premiums
MLE  |  Maximum Loss Expectancy
MNS  |  Material but Not Significant
MTPL  |  Motor Third Party Liability
MVA  |  Market Value Adjustment
MVM  |  Market Value Margin
MVR  |  Market Value Reduction


NAV  |  Net Asset Value
NEP  |  Net Earned Premium
NHS  |  UK National Health Service
NL  |  Non-Life
NSLT  |  Non-similar to Life Techniques
NWP  |  Net Written Premium


OC  |  Open Claims
OC  |  Original Currency
OCI  |  Other Comprehensive Income
OF  |  Own Funds
ORSA  |  Own Risk and Solvency Assessment
OSCR  |  Outstanding Claims Reserve
OSFI  |  The Canadian Regulator
OTC  |  Over-the-counter


PAA  |  Premium Allocation Approach
PAD  |  Provision for Adverse Deviation
PBC  |  Prepared by Client
PBT  |  Profit before Tax
P&C  |  Property & Casualty
PCAOB  |  Public Company Accounting Oversight Board
PCC  |  Protected Cell Company
PD  |  Property Damage
PDF  |  Probability Density Function
PDR  |  Premium Deficiency Reserve
PIE  |  Public Interest Entity
PIM  |  Partial Internal Model
PGAAP  |  Purchase GAAP
PHI  |  Permanent Health Insurance
P&L  |  Profit and Loss
PMI  |  Private Mortgage Insurance
PPE  |  Property, Plant and Equipment
PPO  |  Periodical Payment Order
PPI  |  Payment Protection Insurance
PR  |  Peer Review
PR  |  Pro Rata
PRA  |  Prudential Regulation Authority
PRIIPs  |  Packaged Retail and Insurance-based Investment Product
PUC  |  Projected Unit Credit
PUP  |  Paid Up Policy
PV  |  Present Value
PVFP  |  Present Value of Future Profit


QC  |  Quality Control
QIS  |  Quantitative Impact Study
QRT  |  Quantitative Reporting Templates
QS  |  Quota Share


RA  |  Risk Adjustment
RAPD  |  Risk Assessment Planning Discussion
RAD  |  Risk Attaching During
RAG  |  Red, Amber, Green
RB  |  Reversionary Bonus
RBNS  |  Reported But Not Settled
RF  |  Risk Free
RFF  |  Ring-Fenced Funds
RFR  |  Risk Free Rate
RI  |  Reinsurance
RM  |  Risk Margin
RoC  |  Return on Capital
ROE  |  Return On Equity
ROI  |  Return On Investment
ROMM  |  Risk of Material Misstatement
ROP  |  Return of Premium
RSR  |  Regulatory Supervisory Report


SII  |  Solvency II
SA  |  Significant Accounts
SAP  |  Substantive Audit Procedures
SCR  |  Solvency Capital Requirement
SEC  |  Securities and Exchange Commission
SF  |  Standard Formula
SFCR  |  Solvency and Financial Condition Report
SLT  |  Similar to Life Techniques
SME  |  Small and Medium-sized Enterprises
SOX |  Sarbanes-Oxley Act
SP  |  Single Premium
SPV  |  Special Purpose Vehicle
SR  |  Significant Risk
SRP  |  Supervisory Review Process
STP  |  Short Term Premium
SV  |  Statutory Valuation


TAS  |  Technical Actuarial Standard
TB  |  Terminal (Final) Bonus
TCF  |  Treating Customers Fairly
TCWG  |  Those Charge with Governance
TER  |  Total Expense Ratio
ToR  |  Terms of Reference
TII  |  Tied Insurance Intermediary
TOC  |  Test of Controls
TOD  |  Test of Detail
TP  |  Technical Provisions
TPD  |  Total and Permanent Disability Insurance
T4U  |  Tool for Undertakings


UCITS  |  Unregulated Collective Investment Scheme
UCITS  |  Undertakings for Collective Investments in Transferable Securities
ULAE  |  Unallocated Loss Adjustment Expense
UFR  |  Ultimate Forward Rate
UGL  |  Unrealized Gains and Losses
UL  |  Unit-Linked
ULIP  |  Unit Linked Insurance Plan
ULR  |  Ultimate Loss Ratio
UPR  |  Unearned Premium Reserve
URR  |  Unexpired Risk Reserve
USP  |  Undertaking Specific Parameters
UWP  |  Unitised With-Profits
UWY  |  Underwriting Year


VA  |  Variation Analysis
VAG  |  German Insurance Supervisory Act
VaR  |  Value-at-Risk
VAT  |  Value Added Tax
VIF  |  Value of In-Force
VFA  |  Variable Fee Approach
VM  |  Volume Measure
VOBA  |  Value of Business Acquired
VOPS  |  Volontary Occupational Pension Scheme


WBNI  |  Written But Not yet Incepted
WC  |  Workers Compensation
WCGW  |  What Could Go Wrong
WP  |  Written Premium


XBRL  |  eXtensible Business Reporting Language
XL  |  Excess of Loss


YE  |  Year End
YRT  |  Yearly Renewable Term
YTD  |  Year to Date
YTM  |  Yield to Maturity


Z  |  Age of Retirement


Frequently Asked Questions

Some frequent questions and answers

What is a premium?

It is the amount to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly or annually according to their plan, in return of the coverage he/she has taken from the insurance company.

Do credit scores affect premiums?

Yes they do. According to regulatory associations, there is a direct correlation between credit scores and individuals getting into accidents, and cancellation policies due to non-payment. Therefore, premiums may be higher for lower credit scores.

What is no-claim bonus?​

No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium on the following year.

What is the Surrender Value?

Surrender Value is the amount when you stop paying the premium and withdraw the entire amount. The policy ceases as soon as you withdraw the money, and the insured will lose out all the returns on it.

What is the difference between the participating and non-participating policy?

Participating policy is a policy, where the profit or benefits of the insurance company is shared with the insured in theform of a dividend or reversionary bonuses. While, the non-participating policy, does not share their profit with insured.

What is an 'Endowment Policy'?

An endowment policy is a combination of saving along with risk cover. This type of policy is specially designed to accumulate wealth and at the same time cover your life.  In this type of policy the insured will pay a regular premium for specific time period. And in case of death the money will be paid to beneficiary but, if you outlive the policy tenure, you will receive the sum assured along with accumulated bonus.

What is 'Third Party Insurance'?

An insurance policy that covers the damage caused by another person or party is known as third party Insurance. In this type of insurance, the insured is the first party, insurance company is the second party while the damage done by another is referred as thethird party.  This type of Insurance policy is purchased for vehicles, so that in case of theaccident they can claim it.

What is 'Gap Insurance'?

‘GAP insurance’ is also known as Guaranteed Auto Protection.  It covers the difference between the actual cash value of the vehicle and the balance still owed on financing like loan. GAP insurance amount is generally paid up front.

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