Insurance and
finance terms
A plain-English guide to the terms we use across our website, reports and products.
A to Z of terms
Annual report
A comprehensive report on a company's activities and financial performance over the preceding year.
Annuity
A financial product that pays a fixed stream of income, typically for retirement.
Claim
A formal request to an insurer for payment under a policy following a covered event.
Combined ratio
A measure of underwriting profitability: the sum of the loss ratio and expense ratio. Below 100% indicates an underwriting profit.
Dividend
A payment made by a company to its shareholders from its profits.
ESG
Environmental, social and governance — the three central factors used to measure the sustainability of an investment.
Excess (deductible)
The amount you agree to pay towards a claim before your insurer pays the rest.
Financial Ombudsman Service
An independent service that resolves complaints between consumers and financial businesses.
FSCS
Financial Services Compensation Scheme — protects customers if an authorised firm fails.
Insurer
A company that provides financial protection against specified risks in exchange for a premium.
ISIN
International Securities Identification Number — a unique code identifying a specific security.
Net zero
Achieving a balance between the greenhouse gases emitted and those removed from the atmosphere.
Premium
The amount paid, regularly or in one lump sum, to an insurer for a policy.
Solvency ratio
The ratio of a company's available capital to the capital required to meet its obligations.
Underwriting
The process of assessing risk and determining the premium for a policy.
Volatility
The degree of variation in the price of a financial instrument over time.