New Risk Terms

Ab Initio
From the beginning.
Accident Year
The calendar or accounting year in which a loss occurs.
Accreditation
The process by which a firm may obtain registration as a Lloyd’s broker.
Accredited Lloyd’s broker
A Lloyd's broker
Active Underwriter
The individual at the underwriting box with principal authority to accept insurance and reinsurance risk on behalf of the members of a syndicate.
"Actual Total Loss
This term derives from section 57 of the Marine Insurance Act 1906 (MIA) and refers to situations in marine insurance where -

(a) the subject matter of the insurance is destroyed;
(b) the subject matter of the insurance is so damaged as to be no longer be capable of still being described as the thing insured; or

(c) the insured is deprived of the subject matter of the insurance forever.



Section 58 of the MIA adds that where there is no news of a missing ship then after a reasonable period an actual loss may be presumed."
Adjustment Premium
An additional or return premium that is payable in relation to a deposit premium depending on the performance of an insurance or reinsurance contract.
Advantest
Supplier of automatic test equipment to the semiconductor industry. Advantest's SoC, logic, memory, mixed-signal and RF testers and device handlers are integrated into the most advanced semiconductor fabrication lines in the world. Founded in Tokyo in 1954, Advantest established its North American subsidiary in 1982 and its European subsidiary in 1984. More information is available at www.advantest.com.
"Agent
Insurance:

Someone who acts for another person (the principal) usually for reward.

There are four main classes of agent that may be involved in the underwriting of insurance and reinsurance risks by Lloyd’s underwriters: members’ agents, managing agents, brokers and coverholders. In addition, there are Lloyd’s agents which are independent businesses that provide surveys and loss adjusting services to managing agents, insurance companies and others on a worldwide basis. "
Aggregate
Total (limit of indemnity, premium, retention etc).
Aggregate excess of loss reinsurance
A form of excess of loss reinsurance in which the excess and the limit of liability are expressed as annual aggregate amounts.
Agreed Business Plan
A syndicate business plan that has been approved by or on behalf of Lloyd’s Franchise Board. No managing agent may underwrite for a syndicate without an agreed syndicate business plan. Agreed syndicate business plans may be amended with the agreement of the Franchise Board or someone acting on its behalf.
Agreed Value Policy
An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without any adjustment for depreciation or appreciation.
Aligned Member
An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without any adjustment for depreciation or appreciation.
All Risks
A property insurance which covers any accidental loss or damage that is not specifically excluded under the policy.
Allocated Capacity
This may refer to a member’s allocated capacity or syndicate allocated capacity
Annual Accounting
The reporting of syndicate results on a calendar year basis, with profit taking being restricted to earned premiums.
Annual Venture
This term refers to the reconstitution of a syndicate as an annual business venture where insurance and reinsurance business is written on a year of account basis.
Appreciation
In the context of property insurance an increase in value of the property insured.
Approved Person
An individual who has been approved by the Financial Services Authority (FSA) to perform a FSA controlled function for an authorised person
Approved Run-Off Company
A company that is permitted by Lloyd’s to perform specified functions that would normally be performed by a managing agent of a run-off syndicate on behalf of that agent or a substitute agent.
Assured
Another name for an insured.
Attachment Date
Another term for inception date, being the date on which an insurance or reinsurance contract comes into force.
"Attorney In Fact
A person appointed by a power of attorney to act on behalf of another person.



A Lloyd’s attorney in fact is a representative appointed by Lloyd’s to represent Lloyd’s and Lloyd’s underwriters in a particular country or US state. An attorney in fact may be a natural person or a company and performs a similar role to a Lloyd’s General Representative."
Authorised Person
A person (usually a firm) that has been approved by the Financial Services Authority (FSA) to carry on one or more FSA regulated activities.
Avaya
Avaya delivers Intelligent Communications solutions that help companies transform their businesses to achieve marketplace advantage. More than 1 million businesses worldwide, including more than 90 percent of the FORTUNE 500(R), use Avaya solutions for IP Telephony, Unified Communications, Contact Centers and Communications-Enabled Business Processes. Avaya Global Services provides comprehensive service and support for companies, small to large.
Average
If the sum insured under non-marine insurance is expressed to be “subject to average” and that sum is less than the value of the subject matter of the insurance then any claim that is agreed under the policy will be reduced proportionately to reflect the under insurance.
"Section 81 of the Marine Insurance Act 1906 say that an insured shall be his own insurer as regards any under insurance."

In marine insurance the term average may also refer to one of two types of loss, general average and particular average.
Avoidance of a contract ab initio
The cancellation of an insurance or reinsurance contract from its beginning by an insurer or reinsurer on the basis of the misrepresentation and/or non-disclosure of material facts. The result is that the insurer/reinsurer has no liability under the contract but must repay the premium to the insured/reassured.
BlocSec
An electronic crossing network created to provide institutional investors with optimised execution for their Asian block trades, minimising both transaction costs and market impact. As a dark pool of liquidity, BlocSec gives traders the ability to place orders with complete anonymity, allowing zero information leakage into the market.
Chi-X
Multilateral trading facility developed following MiFid. Majority owned by Instinet Europe
Demand Management
Demand Management, Inc. (DMI) is a global resource for software, support, services and training for maximizing profits in manufacturing, distribution and retail operations. More global supply chains depend on DMI's Demand Solutions than any other system for forecasting, demand planning and point-of-sale analysis.
Direct Edge
US-based multilateral trading faciltiy or trading platform.
Equiduct
Multilateral trading facility majority owned by Borse Berlin and Burgundy. Nordic equities markets are the main target.
European Multilateral Clearing Facility
Clearing unit set up by Fortis for European alternative trading systems.
MTF
Multilateral Trading Facility
Nasdaq OMX Europe
Pan Euopean Multilateral Trading Facility (MTF) backed by Nasdaq OMX
New Generation Computing
NGC(R) is a leading Fashion, Apparel, Footwear and Retail software company. NGC's SQL Series is a comprehensive suite of "end-to-end" solutions for PLM (e-PLM), Global Sourcing (e-SPS(R)) and ERP (RedHorse(R)). The SQL Series provides real-time visibility to product information, accelerates speed to market, and enables quality control throughout the supply chain to help deliver superior products. NGC customers include leading brands and retailers such as VF Corporation(R), A|X Armani Exchange(R), Carter's(R), Casual Male Retail Group(R), Maggy London, Goody's Family Clothing, Hugo Boss(R), Dick's Sporting Goods, Isda & Co., Tristan & America(R), Axis(R), Parigi Group, Wilson's Leather(R), and many others.
PEX
Small multilateral trading platform for the Portugese market.
T2000
Advantest's T2000 test system is designed specifically to test complex processors, consumer and other SoC devices, and is used by chipmakers worldwide for testing GPUs, CPUs and other sophisticated products. The T2000 is easily configurable for testing microcontrollers, microprocessors, RF and mixed-signal devices, thanks to an expanding menu of test modules enabling unprecedented customization of test capabilities with unmatched support for parallel testing. These features make the T2000 an ideal test system for IDMs, fabless companies, sub-cons and foundries, who require a flexible platform with interchangeable modules that are easily adapted to changing device requirements
Turquoise
Alternative trading platform in dark liquidity. Developed following MiFiD. Founder banks are : BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley, Société Générale.