Insurance abbreviations refer to shortened form of words or phrases that are commonly used in insurance or reinsurance industry. As we all know, insurance is a critical component of modern life, providing financial protection against various risks. Insurance, a complex industry with its own set of jargon, is often riddled with abbreviations that can leave individuals scratching their heads. In this guide, we’ll break down common insurance abbreviations to help you navigate policy documents and discussions with ease. However, please note that depending on specific context, company or region, some abbreviations may have different meaning or full form. In some other industries, same abbreviations may be used to represent different words or phrases.
Commonly used insurance abbreviations with full form
- AAMGA: American Association of Managing General Agents
- ABN: Advanced Beneficiary Notice – Notification given to Medicare beneficiaries explaining non-covered services
- ACA: Affordable Care Act – U.S. legislation aimed at improving access to health insurance and healthcare
- ACO: Accountable Care Organizations – Healthcare entities focusing on coordinated patient care
- AIC: Associate in Claims
- ALAE: Allocated Loss Adjustment Expense
- AML: Anti-Money Laundering – Measures to prevent financial systems from being used for illegal activities
- AOP: All Other Perils
- APE: Annual Premium Equivalent (a.k.a. Annualized Premium Equivalent) – Measure of business sales by an insurance company
- APTC: Advanced Premium Tax Credit – Subsidy to help eligible individuals pay for health insurance premiums
- ARDM: Agency Recruitment and Development Manager – Role responsible for recruiting and developing insurance agents
- AU: Associate in Commercial Underwriting
- B&C: Buildings and Contents
- BI: Business Interruption
- BOP: Business Owner’s Policy – Insurance package for small businesses covering property and liability
- BWRP: Blended Weighted Received Premium
- CALI: Compulsory Automobile Liability Insurance
- CAP: Claim Adjuster Professional – Professionals who are responsible for evaluating insurance claims on behalf of insurance companies
- CAR: Contractor’s All Risk – Comprehensive coverage for civil construction works
- CCC: Care, Custody, or Control
- CCIIO: Center for Consumer Information and Insurance Oversight – U.S. government agency overseeing health insurance
- CDW: Collision Damage Waiver
- CEN: Confiscation, Expropriation, Nationalization
- CEND: Confiscation, Expropriation, Nationalization and Deprivation
- CHIP: Children’s Health Insurance Program – U.S. program providing health coverage for children
- COI: Certificate of Insurance – Document providing proof of insurance coverage
- COT: Court Of the Table – Recognition/Level for insurance sales achievement (Also check: TOT)
- CPA: Compulsory Personal Accident – Mandatory insurance covering personal accidents and repair cost of own vehicle
- CPCU: Chartered Property Casualty Underwriter – a professional advanced certification, that signifies expertise in property and casualty insurance, risk management and underwriting, issued by “The Institutes”
- CPE: Contractor’s Plant and Equipment
- CPM: Contractor’s Plant and Machinery
- CSL: Combined Single Limit
- DOGH: Declaration of Good Health – Statement affirming good health for insurance purposes
- DOL: Date of Loss
- EAR: Erection All Risk – Coverage for engineering facilities and other construction projects involving erections and installations.
- EBI: Equipment Breakdown Insurance – Coverage for sudden breakdown of machinery
- ECS: Electronic Clearing Service – Technology to digitally transfer funds such as insurance premium payments
- EHB: Essential Health Benefits – Set of health services covered by insurance plans (as defined by Affordable Care Act)
- eIA: Electronic Insurance Account – Online platform for managing insurance policies
- EMR: Experience Modification Rating – Factor adjusting workers’ compensation insurance premiums
- EOB: Explanation of Benefits
- EPI: Extended Period of Indemnity/Interruption – Extended coverage for business interruption
- EPLI: Employment Practices Liability Insurance – Coverage for employment-related claims or lawsuits
- FEGLI: Federal Employees’ Group Life Insurance
- FHBM: Flood Hazard Boundary Map
- FIII: Fellow of Insurance Institute of India
- FIMA: Federal Insurance and Mitigation Administration
- FIRM: Flood Insurance Rate Map
- FLS: Front Line Sales/Supervisor – Role in direct sales or supervise such direct sales agent
- FPR: First Premium Receipt/Received – Acknowledgment or evidence of the initial premium payment
- FTD: First to Die – Insurance policy covering multiple lives, paying out on the first death
- GAMA: General Agents and Managers Association
- GCCV: Goods Carrying Commercial Vehicle – Commercial vehicle used for transporting goods
- GMC: Group Medical Coverage – Health insurance coverage for a group of individuals
- GRP: Group Risk Plan
- GSV: Guaranteed Surrender Value – Minimum value payable upon policy surrender
- GTL: Group Term Life – shorter period of life insurance contract which covers multiple people
- HIPAA: Health Insurance Portability and Accountability Act – U.S. law protecting health information
- HLV: Human Life Value – Financial value representing an individual’s life
- HMO: Health Maintenance Organization – Health insurance plan with a designated network of providers
- IAIS: International Association of Insurance Supervisors – a voluntary membership organisation of insurance supervisors and regulators from more than 200 jurisdictions
- IBNR: Incurred But Not Reported – “Estimated” losses not yet reported to the insurer
- IC: Insurance Company – Entity providing insurance coverage
- ICA: International Claim Association
- IDB: Initial Daily Benefit – the maximum amount a health policy will reimburse for each day of care services received if insured is hospitalized due to accident or sickness during initial period of coverage
- IDV: Insured Declared Value – Maximum amount payable in case of vehicle loss or damage.
- IGMS: Integrated Grievance Management System – System by IRDAI for managing insurance-related grievances.
- IIB: Insurance Information Bureau of India – Act as single point for entire insurance industry data
- IM: Inland Marine
- IMF: Insurance Marketing Firm – Distribution channel approved by IRDAI
- IMT: India Motor Tarrif – Provisions and Endorsements related to the motor insurance tariff in India
- IRDAI: Insurance Regulatory and Development Authority of India – Government regulatory body overseeing the insurance industry in India
- IRR: Internal Rate of Return – Measure of the profitability of an (insurance) investment
- LTCI: Long-Term Care Insurance – form of health insurance that provides benefits for a chronically ill or disabled individual over an extended period of time
- LUTC: Life Underwriter Training Council
- MDRT: Million Dollar Round Table – Association recognizing top-performing insurance agents and financial service professionals
- MGA: Managing General Agent – Intermediary with underwriting authority from insurers
- MGAA: Managing General Agents‘ Association
- MIB: Medical Information Bureau
- MLR: Medical Loss Ratio – Ratio of insurance premiums spent on medical claims and efforts to improve quality of care
- MPCI: Multi-Peril Crop Insurance – Insurance that provides coverage against multiple risks to crops, such as weather-related damage
- MRI: Mortgage Redemption Insurance – Coverage for ensuring the repayment of a mortgage in case of death
- MTA: Mid-Term Adjustment
- NCB: No Claim Bonus – Discount for policyholders with a claim-free record
- NCD: No Claim Discount – Another term for No Claim Bonus.
- NFIP: National Flood Insurance Program
- OCIP: Owner Controlled Insurance Policy
- OCP: Owners And Contractors Protective
- OD: Own Damage – Coverage for damage to the insured’s vehicle.
- OEM: Original Equipment Manufacturer – additional coverage to ensure original parts will only be used when repairs are made to the insured vehicle/machine
- OEP: Open Enrollment Period – Designated time for enrolling in health insurance plans.
- OON: Out of Network – Healthcare providers not part of an insurance plan’s network (Also check: PPN)
- OOP: Out of Pocket – Maximum amount a policyholder has to pay for covered services
- OPD: Outpatient Department – Healthcare services not requiring hospitalization
- PA: Personal Accident – Insurance coverage for accidental injuries
- PBM: Pharmacy Benefit Manager – Entity managing prescription drug benefits
- PCCV: Passenger Carrying Commercial Vehicle – Commercial vehicle used for transporting passengers
- PED: Pre-Existing Diseases – Medical conditions existing before policy issuance
- PI: Professional Indemnity – Insurance that provides coverage for professionals against claims arising from errors or omissions in their work
- PIVC: Pre-Issuance Verification Call – A verification made by an insurance company to ensure the suitability of the product to the customer and obtain their full consent before the policy is issued
- PLR: Premissible Loss Ratio
- PMI: Private Mortgage Insurance
- POS: Point of Service – A health insurance plan where members choose a primary care provider but can go out of network at a higher cost (Also check: HMO, PPO)
- POSP: Point of Sales Person – An individual involved in selling insurance policies directly to customers at the point of sale
- PPD: Permanent Partial Disability – A condition where an individual experiences a permanent but partial loss of physical or mental function
- PPN: Preferred Provider Network – A network of healthcare providers that have agreed to provide services at discounted rates to insured individuals
- PPO: Preferred Provider Organization – A health insurance plan that allows members to use both in-network and out-of-network healthcare providers, with different cost structures
- PPT: Premium Payment Term – The period during which insurance premiums are paid by the policyholder (it could be shorter than the policy period)
- PTD: Permanent Total Disability – A condition where an individual is permanently unable to work due to a disability
- RFP: Request for Proposal
- ROP: Return of Premium – A feature in some life insurance policies where premiums are returned to the policyholder if they survive the policy term
- RRT: Risk Retention Group
- RSMD: Riot, Strike, Malicious Damage – Coverage protecting against damage to property caused by riots, strikes, or malicious acts
- RSMDST: Riot, Strike, Malicious Damage, Sabotage and Terrorism
- RTI: Return to Invoice – Coverage in motor insurance that pays the difference between the insured value and the purchase price if a vehicle is declared a total loss
- SME: Small and Medium Enterprises – Businesses with a moderate-sized workforce and revenue (often targeted by specific insurance products tailored to their needs)
- SP: Single Premium – A one-time lump-sum payment for an insurance policy that provides coverage for the entire policy term.
- SSDI: Social Security Disability Insurance – A federal insurance program providing financial assistance to individuals with disabilities
- SRCC: Strike, Riot and Civil Commotion
- STFI: Storm, Tempest, Flood, and Inundation – Property Insurance coverage protecting against damages caused by storms, typhoons, cyclones, tempest, tornados, hurricanes, floods and inundation
- STP: Straight Through Processing – An automated process in insurance where information is captured, processed, and transmitted without manual intervention
- TAT: Turnaround Time – time taken to process and complete a specific task or transaction within the insurance industry such as claims or policy issuance
- TCOR: Total Cost of Risk
- TDB: Temporary Disability Benefits
- TIR: Total Insurable Risk – The maximum amount of risk that an insurer is willing to accept for a specific coverage
- TOT: Top Of the Table – Recognition for insurance sales achievement (Also Check: COT)
- TP: Third Party – Often refers to the party (individual or entity) not directly related to us but is vulnerable to risk for which we could be liable
- TPL: Third Party Liability – Insurance coverage that protects the insured against claims from third parties for bodily injury or property damage
- TPA: Third-Party Administrator – An entity that manages insurance claims and administrative services on behalf of insurance companies
- TPPD: Third Party Property Damage – Coverage that protects the insured against claims from third parties for damage to their property
- TSI: Total Sum Insured – The maximum amount an insurance policy will pay in the event of a covered loss
- TTD: Temporary Total Disability – A condition where an individual is temporarily unable to work due to a disability
- UAP: Union des Assurances de Paris (which translates as “Paris Insurance Union”)
- UCR: Usual, Customary and Reasonable – The amount an insurance company considers reasonable for medical services in a specific geographic area
- ULIP: Unit Linked Insurance Plan – A life insurance plan that combines insurance coverage with investment opportunities
- URN: Unique Reference Number – A distinctive identifier assigned to a particular transaction or request for tracking and reference
- VUL: Variable Universal Life – A type of life insurance policy with flexible premiums and an investment component
- WCP: Workers Compensation Policy – Insurance that provides coverage for workers’ injuries or illnesses arising in the course of employment
- WFYP: Waiting for your Premium – a grace period during which policyholders can make premium payments without facing immediate policy cancellation
- WPC: With-Profits Contract (or With-Profits Committee) – A type of life insurance contract where policyholders may receive bonuses based on the insurer’s profits (or Committee to oversee such bonuses)
- WRP: Weighted Received Premium – The total value of premiums received by an insurer, adjusted for different types of policies and risks (e.g.: the sum of first year premium received during the year and 10% of single premiums including top-up premiums)
Reinsurance-specific abbreviations with full form
- CAT: Catastrophe
- GNPI: Gross Net Premium Income
- MDP: Minimum & Deposit Premium
- NEP: Net Earned Premium
- PLA: Preliminary Loss Advice
- ROL: Rate on Line
- SLA: Settled Loss Advice
In the realm of insurance, abbreviations serve as shorthand for complex coverage types and policy features. Armed with the knowledge of these abbreviations, you can navigate the insurance landscape with more confidence. Whether you’re deciphering policy documents or engaging in discussions with insurance professionals, this guide should serve as a valuable resource in demystifying the world of insurance abbreviations.
If you know some other commonly used abbreviations related to insurance industry not mentioned here, you can feel free to write to us.