Risk-based capital

capital required for the insurer to pursue safe insurance activity, calculated by taking into account the specifics and weight of the risks which are taken by that insurer.

Reinsurance broker

insurance intermediary who represents insurers seeking reinsurance; he/she may be responsible for construction, preparation and placement of insurers’ reinsurance programmes.

Regular premium

is the life insurance premium paid periodically; it is usually applied in the agreements with a long period of coverage.


the price for an insurance unit; rates expressed in percent usually apply to the insurance sum (e.g. accident and theft insurance); rates expressed in amounts may be determined for a day of coverage (e.g. travel insurance) or for covering a single risk in a given period (e.g. MTPL insurance).


reinsurance agreement concluded by reinsurers with further reinsurers.

Risk management

a set of measures taken by an organization (e.g. an enterprise, a local authority) aimed at protecting the organization from any unexpected events when reaching its assumed goals. It is usually assumed that the risk management covers three stages of operation, i.e. identification, assessment and taking the risk.

Ratio of solvency margin coverage with own means

The statutory ratio determining the level of capital security for the business run by an insurer; statutorily, it should be higher than 100 per cent by law by it is its sufficient level. Normally, the capital security is thought to be good when this ratio exceeds 200 per cent.


a method of dispersion (distribution) of risk, used by isurers and based on giving some of the insured risks to another insurer or specialist reinsurer, by means of an agreed fee of reinsurance premium.