The difference between insurance premiums earned and claims and expenses paid over a given period. If premiums are the higher figure, there is an underwriting profit; if they are lower, there is an underwriting loss. Underwriting profit excludes investment income, so is a commonly used method of evaluating the performance of a general insurance company.

The process of selecting which risks an insurance company can cover, and deciding the premiums and terms of acceptance. On the stock exchange, an arrangement by which a company is guaranteed that an issue of shares will raise a given amount of money, because the underwriters promise to buy any of the issue not taken up by the public.

Someone willing to assume an insurance risk in exchange for payment of a premium. The term derives from the practice of the person who accepted the risk signing their name under the amount they insured (thereby entering into a contract).

Addition to your contribution toward your insurance policy.

Bonus given by the insurance company on termination(death, maturity) of policy depending upon the company's profitablity.

Also known as temporary insurance. A type of life insurance where the benefit (sum assured) is paid only if death occurs during a specific period of time.

Option to switch from one fund to the othere depending on one's risk appetite.

The amount of money payable on cancellation ("surrender") of a policy with an investment element, before the benefit becomes payable (normally on death or maturity). Surrender values will depend on premiums paid and time elapsed.

The act of cancelling or cashing in the proceeds of an insurance contract before it becomes payable or reaches its maturity date for a surrender value.

The lump sum benefit payable under an insurance policy or contract in circumstances defined within the policy (usually it represents an amount payable on death).