Global Financial Glossary
Search essential international finance and insurance terms.
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Annual Percentage Rate: borrowing cost expressed on an annual basis.
Annual Percentage Yield: return including compounding assumptions.
Amount paid by the policyholder before covered payment.
Common UK/Australian term broadly comparable to a deductible.
Assessment used to decide eligibility, terms and price.
A circumstance or loss the contract does not cover.
Principle of restoring a covered financial position, subject to terms.
Person or entity designated to receive a benefit.
Account used to hold money for taxes, insurance or transaction conditions.
Loan-to-value ratio comparing borrowing with property value.
US private mortgage insurance commonly associated with higher-LTV loans.
Fixed amount paid for a covered healthcare service.
Percentage share of covered healthcare cost.
Property income measure relative to asset value.
Annual fund operating cost expressed as a percentage.
Scheduled allocation of loan payments over time.
More international insurance and finance terms
Definitions are plain-English starting points. Contract wording and legal meaning can differ by jurisdiction.
Professional who applies mathematics and statistics to risk, pricing and reserves.
Maximum an insurer will pay for all covered losses during a defined period.
Contract designed to provide income or accumulate value, subject to local rules.
Distribution of investments across asset classes according to objectives and risk.
Term used in some markets for the person or interest protected by insurance.
Temporary evidence of insurance pending issue of the full policy.
Debt security through which an issuer borrows from investors.
Intermediary who helps arrange insurance or financial products within local permissions.
Increase in an asset value realised or recognised under applicable tax rules.
Savings component that may build inside certain permanent life policies.
Request for payment or service under an insurance contract.
Person or entity making a claim.
Insurer measure combining claims and expenses relative to earned premium.
Interest calculated on principal plus previously accumulated interest.
Maximum payable amount, subject to the policy and sublimits.
Indicator derived from credit information; methods and use differ by market.
Amount payable under a life policy when covered conditions are met.
Retirement plan promising benefits under a formula.
Retirement plan where contributions are invested and outcome depends on performance and rules.
Reduction in asset value through age, use, condition or accounting treatment.
Spreading exposure across different risk drivers; it does not eliminate loss.
Distribution a company may make to shareholders.
Document that changes or adds to policy terms.
Ownership interest in an asset or company; for property, value less secured debt.
Moving an unresolved issue to a higher internal or external review stage.
Assets, liabilities and legal interests dealt with after death.
Person or organisation required to act under defined duties for another party.
Interest rate set for a stated period under the agreement.
Additional time allowed for an action or payment under defined conditions.
Premium before specified deductions, commissions or adjustments.
Condition that can increase the likelihood or severity of loss.
Fund designed to track a stated market index before fees and tracking differences.
Broad increase in prices that reduces purchasing power.
Recognised financial or legal interest in the subject of insurance.
Person, organisation, property or interest protected under a policy.
Entity authorised to assume insurance risk.
Loan structure where scheduled payments may not reduce principal during a defined period.
Legal responsibility or a financial obligation.
Ability to access or sell an asset without unacceptable delay or loss.
Estimated price an asset could achieve under stated market conditions.
Date on which a loan, deposit or investment reaches its contractual end.
Loan secured on real property, subject to jurisdiction-specific law.
Value of a fund’s assets less liabilities, commonly expressed per unit or share.
Premium after defined deductions or before expenses, depending on context.
Premium reduction linked to claims history under provider rules.
Independent or statutory body that may review eligible unresolved complaints.
Event capable of causing loss, such as fire, theft or storm.
Person or entity that owns or enters into the insurance contract.
Collection of investments, loans, policies or risks.
Price charged for insurance protection.
Current value of future cash flows using a discount rate.
Original amount invested or outstanding on a loan, excluding interest.
Legal process for administering an estate, varying by jurisdiction.
Insurance purchased by an insurer to manage part of its risk.
Continuation or replacement of cover for a new policy period.
Estimate or funds set aside for future obligations, depending on context.
Additional provision that modifies a policy, often used in life and health insurance.
Amount and type of risk an organisation is willing to pursue or retain.
Acceptable variation around objectives or risk limits.
Tradable financial instruments such as shares and bonds.
Agreed resolution or payment of a claim or dispute.
Unit of ownership in a company or fund.
Risk connected with government actions, creditworthiness or political conditions.
Insurer’s right, after payment, to pursue recovery from a responsible third party where permitted.
Lower limit applying to a particular category within a broader policy limit.
Stated maximum amount for specified insured property or interest, subject to terms.
Amount available when an eligible life or investment contract is ended early.
Life cover for a specified term without a general savings component.
Loss treated as complete under policy or legal criteria.
Legal arrangement in which assets are held and managed for beneficiaries.
Premium relating to the remaining portion of a policy period.
Interest rate that can change under the agreement’s benchmark or method.
Time that must pass before specified benefits become available.
Intentional relinquishment of a right or requirement, subject to legal conditions.
Permanent life insurance designed to remain in force subject to premium and policy terms.
Income return on an investment, calculated using a stated method.
Person who ultimately owns, controls or benefits from an entity or asset.
Card-payment reversal process governed by network, issuer and legal rules.
Institution that safeguards financial assets or records ownership.
Measure of a bond’s sensitivity to interest-rate changes.
Liquid reserve held for unexpected essential costs or income disruption.
Authority supervising how covered financial firms behave toward markets and consumers.
Know Your Customer controls used to identify and understand customers under applicable rules.
Anti-money-laundering framework for preventing, detecting and reporting suspicious activity.
Ability of an insurer or entity to meet long-term obligations.
Situation where coverage is insufficient relative to the insured exposure or policy basis.
Quick answers
Are equivalent terms legally identical?
No. Similar terms can operate differently under local law and policy wording.
Can the glossary interpret a policy?
No. The complete contract and applicable law determine meaning.