Chapter 11 Glossary

Question 1

Bordereau

Answer 1

A detailed list of premiums, claims and other important statistics provided by ceding insurers to reinsurers, so that payments due under a reinsurance treaty (or delegated authority schemes in direct insurance) can be calculated.

Question 2

CRESTA zones

Answer 2

The Global Catastrophe Risk Evaluating and Standardising Target Accumulations zone data set helps brokers and reinsurers assess and present risk, based on the zoning system established by the world’s leading reinsurers.

Based primarily on the observed or expected seismic activity (although drought, flood and wind stroms are also considered) within a country, CRESTA zones consider the distribution of insured values within a country as well as administrative or political boundaries for easier assessment.

Question 3

Risk group

Answer 3

The rating cell or risk segment into which particular policies are categorised, within a type of insurance cover. The objective is to achieve a group of policies or risks that have homogeneous characteristics and hence a similar risk of claims.