Sharing insurance & reinsurance based knowledge

Insurance Abbreviations

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

  1. AAMGA: American Association of Managing General Agents
  2. ABN: Advanced Beneficiary Notice – Notification given to Medicare beneficiaries explaining non-covered services
  3. ACA: Affordable Care Act – U.S. legislation aimed at improving access to health insurance and healthcare
  4. ACO: Accountable Care Organizations – Healthcare entities focusing on coordinated patient care
  5. AIC: Associate in Claims
  6. ALAE: Allocated Loss Adjustment Expense
  7. AML: Anti-Money Laundering – Measures to prevent financial systems from being used for illegal activities
  8. AOP: All Other Perils
  9. APE: Annual Premium Equivalent (a.k.a. Annualized Premium Equivalent) – Measure of business sales by an insurance company
  10. APTC: Advanced Premium Tax Credit – Subsidy to help eligible individuals pay for health insurance premiums
  11. ARDM: Agency Recruitment and Development Manager – Role responsible for recruiting and developing insurance agents
  12. AU: Associate in Commercial Underwriting
  13. B&C: Buildings and Contents
  14. BI: Business Interruption
  15. BOP: Business Owner’s Policy – Insurance package for small businesses covering property and liability
  16. BWRP: Blended Weighted Received Premium
  17. CALI: Compulsory Automobile Liability Insurance
  18. CAP: Claim Adjuster Professional – Professionals who are responsible for evaluating insurance claims on behalf of insurance companies
  19. CAR: Contractor’s All Risk – Comprehensive coverage for civil construction works
  20. CCC: Care, Custody, or Control
  21. CCIIO: Center for Consumer Information and Insurance Oversight – U.S. government agency overseeing health insurance
  22. CDW: Collision Damage Waiver
  23. CEN: Confiscation, Expropriation, Nationalization
  24. CEND: Confiscation, Expropriation, Nationalization and Deprivation
  25. CHIP: Children’s Health Insurance Program – U.S. program providing health coverage for children
  26. COI: Certificate of Insurance – Document providing proof of insurance coverage
  27. COT: Court Of the Table – Recognition/Level for insurance sales achievement (Also check: TOT)
  28. CPA: Compulsory Personal Accident – Mandatory insurance covering personal accidents and repair cost of own vehicle
  29. 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”
  30. CPE: Contractor’s Plant and Equipment
  31. CPM: Contractor’s Plant and Machinery
  32. CSL: Combined Single Limit
  33. DOGH: Declaration of Good Health – Statement affirming good health for insurance purposes
  34. DOL: Date of Loss
  35. EAR: Erection All Risk – Coverage for engineering facilities and other construction projects involving erections and installations.
  36. EBI: Equipment Breakdown Insurance –  Coverage for sudden breakdown of machinery
  37. ECS: Electronic Clearing Service – Technology to digitally transfer funds such as insurance premium payments
  38. EHB: Essential Health Benefits – Set of health services covered by insurance plans (as defined by Affordable Care Act)
  39. eIA: Electronic Insurance Account – Online platform for managing insurance policies
  40. EMR: Experience Modification Rating – Factor adjusting workers’ compensation insurance premiums
  41. EOB: Explanation of Benefits
  42. EPI: Extended Period of Indemnity/Interruption – Extended coverage for business interruption
  43. EPLI: Employment Practices Liability Insurance – Coverage for employment-related claims or lawsuits
  44. FEGLI: Federal Employees’ Group Life Insurance
  45. FHBM: Flood Hazard Boundary Map
  46. FIII: Fellow of Insurance Institute of India
  47. FIMA: Federal Insurance and Mitigation Administration
  48. FIRM: Flood Insurance Rate Map
  49. FLS: Front Line Sales/Supervisor – Role in direct sales or supervise such direct sales agent
  50. FPR: First Premium Receipt/Received – Acknowledgment or evidence of the initial premium payment
  51. FTD: First to Die – Insurance policy covering multiple lives, paying out on the first death
  52. GAMA: General Agents and Managers Association
  53. GCCV: Goods Carrying Commercial Vehicle – Commercial vehicle used for transporting goods
  54. GMC: Group Medical Coverage – Health insurance coverage for a group of individuals
  55. GRP: Group Risk Plan
  56. GSV: Guaranteed Surrender Value – Minimum value payable upon policy surrender
  57. GTL: Group Term Life – shorter period of life insurance contract which covers multiple people
  58. HIPAA: Health Insurance Portability and Accountability Act – U.S. law protecting health information
  59. HLV: Human Life Value – Financial value representing an individual’s life
  60. HMO: Health Maintenance Organization – Health insurance plan with a designated network of providers
  61. IAIS: International Association of Insurance Supervisors – a voluntary membership organisation of insurance supervisors and regulators from more than 200 jurisdictions
  62. IBNR: Incurred But Not Reported – “Estimated” losses not yet reported to the insurer
  63. IC: Insurance Company – Entity providing insurance coverage
  64. ICA: International Claim Association
  65. 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
  66. IDV: Insured Declared Value – Maximum amount payable in case of vehicle loss or damage.
  67. IGMS: Integrated Grievance Management System – System by IRDAI for managing insurance-related grievances.
  68. IIB: Insurance Information Bureau of India – Act as single point for entire insurance industry data
  69. IM: Inland Marine
  70. IMF: Insurance Marketing Firm – Distribution channel approved by IRDAI
  71. IMT: India Motor Tarrif – Provisions and Endorsements related to the motor insurance tariff in India
  72. IRDAI: Insurance Regulatory and Development Authority of India – Government regulatory body overseeing the insurance industry in India
  73. IRR: Internal Rate of Return – Measure of the profitability of an (insurance) investment
  74. 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
  75. LUTC: Life Underwriter Training Council
  76. MDRT: Million Dollar Round Table – Association recognizing top-performing insurance agents and financial service professionals
  77. MGA: Managing General Agent – Intermediary with underwriting authority from insurers
  78. MGAA: Managing General Agents‘​ Association
  79. MIB: Medical Information Bureau
  80. MLR: Medical Loss Ratio – Ratio of insurance premiums spent on medical claims and efforts to improve quality of care
  81. MPCI: Multi-Peril Crop Insurance – Insurance that provides coverage against multiple risks to crops, such as weather-related damage
  82. MRI: Mortgage Redemption Insurance – Coverage for ensuring the repayment of a mortgage in case of death
  83. MTA: Mid-Term Adjustment
  84. NCB: No Claim Bonus – Discount for policyholders with a claim-free record
  85. NCD: No Claim Discount – Another term for No Claim Bonus.
  86. NFIP: National Flood Insurance Program
  87. OCIP: Owner Controlled Insurance Policy
  88. OCP: Owners And Contractors Protective
  89. OD: Own Damage – Coverage for damage to the insured’s vehicle.
  90. OEM: Original Equipment Manufacturer – additional coverage to ensure original parts will only be used when repairs are made to the insured vehicle/machine
  91. OEP: Open Enrollment Period – Designated time for enrolling in health insurance plans.
  92. OON: Out of Network – Healthcare providers not part of an insurance plan’s network (Also check: PPN)
  93. OOP: Out of Pocket – Maximum amount a policyholder has to pay for covered services
  94. OPD: Outpatient Department – Healthcare services not requiring hospitalization
  95. PA: Personal Accident – Insurance coverage for accidental injuries
  96. PBM: Pharmacy Benefit Manager – Entity managing prescription drug benefits
  97. PCCV: Passenger Carrying Commercial Vehicle – Commercial vehicle used for transporting passengers
  98. PED: Pre-Existing Diseases – Medical conditions existing before policy issuance
  99. PI: Professional Indemnity – Insurance that provides coverage for professionals against claims arising from errors or omissions in their work
  100. 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
  101. PLR: Premissible Loss Ratio
  102. PMI: Private Mortgage Insurance
  103. 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)
  104. POSP: Point of Sales Person – An individual involved in selling insurance policies directly to customers at the point of sale
  105. PPD: Permanent Partial Disability – A condition where an individual experiences a permanent but partial loss of physical or mental function
  106. PPN: Preferred Provider Network – A network of healthcare providers that have agreed to provide services at discounted rates to insured individuals
  107. 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
  108. PPT: Premium Payment Term – The period during which insurance premiums are paid by the policyholder (it could be shorter than the policy period)
  109. PTD: Permanent Total Disability – A condition where an individual is permanently unable to work due to a disability
  110. RFP: Request for Proposal
  111. ROP: Return of Premium – A feature in some life insurance policies where premiums are returned to the policyholder if they survive the policy term
  112. RRT: Risk Retention Group
  113. RSMD: Riot, Strike, Malicious Damage – Coverage protecting against damage to property caused by riots, strikes, or malicious acts
  114. RSMDST: Riot, Strike, Malicious Damage, Sabotage and Terrorism
  115. 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
  116. SME: Small and Medium Enterprises – Businesses with a moderate-sized workforce and revenue (often targeted by specific insurance products tailored to their needs)
  117. SP: Single Premium – A one-time lump-sum payment for an insurance policy that provides coverage for the entire policy term.
  118. SSDI: Social Security Disability Insurance – A federal insurance program providing financial assistance to individuals with disabilities
  119. SRCC: Strike, Riot and Civil Commotion
  120. STFI: Storm, Tempest, Flood, and Inundation – Property Insurance coverage protecting against damages caused by storms, typhoons, cyclones, tempest, tornados, hurricanes, floods and inundation
  121. STP: Straight Through Processing – An automated process in insurance where information is captured, processed, and transmitted without manual intervention
  122. TAT: Turnaround Time – time taken to process and complete a specific task or transaction within the insurance industry such as claims or policy issuance
  123. TCOR: Total Cost of Risk
  124. TDB: Temporary Disability Benefits
  125. TIR: Total Insurable Risk – The maximum amount of risk that an insurer is willing to accept for a specific coverage
  126. TOT: Top Of the Table – Recognition for insurance sales achievement (Also Check: COT)
  127. 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
  128. TPL: Third Party Liability – Insurance coverage that protects the insured against claims from third parties for bodily injury or property damage
  129. TPA: Third-Party Administrator – An entity that manages insurance claims and administrative services on behalf of insurance companies
  130. TPPD: Third Party Property Damage – Coverage that protects the insured against claims from third parties for damage to their property
  131. TSI: Total Sum Insured – The maximum amount an insurance policy will pay in the event of a covered loss
  132. TTD: Temporary Total Disability – A condition where an individual is temporarily unable to work due to a disability
  133. UAP: Union des Assurances de Paris (which translates as “Paris Insurance Union”)
  134. UCR: Usual, Customary and Reasonable – The amount an insurance company considers reasonable for medical services in a specific geographic area
  135. ULIP: Unit Linked Insurance Plan – A life insurance plan that combines insurance coverage with investment opportunities
  136. URN: Unique Reference Number – A distinctive identifier assigned to a particular transaction or request for tracking and reference
  137. VUL: Variable Universal Life – A type of life insurance policy with flexible premiums and an investment component
  138. WCP: Workers Compensation Policy – Insurance that provides coverage for workers’ injuries or illnesses arising in the course of employment
  139. WFYP: Waiting for your Premium – a grace period during which policyholders can make premium payments without facing immediate policy cancellation
  140. 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)
  141. 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

  1. CAT: Catastrophe
  2. GNPI: Gross Net Premium Income
  3. MDP: Minimum & Deposit Premium
  4. NEP: Net Earned Premium
  5. PLA: Preliminary Loss Advice
  6. ROL: Rate on Line
  7. 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.