Annexes

AuthorDirectorate-General for Energy (European Commission), ENCO
Pages90-134
Final Report - MOVE/ENER/SRD/2016-498 Lot 2
Study on the insurance, private and financial markets in the field of nuclear third party liability
Page 90
ANNEXES
A. Glossary
B. Objective and task index
C. Nuclear Power plants in the EU
D. Nuclear liability financial security requirements in the EU208
E. Nuclear third-party liability insurance capacity analysis
F. Nuclear insurance pools and other insurers capacity detail
G. The radioactive contamination exclusion clause
H. The US Nuclear Regulatory Commission (NRC) ENO definition209
I. The International Nuclear Event Scale (INES)210
TECHNICAL ANNEXES
1. Self-Insurance - Nuclear insurance mutuals
2. Self-Insurance Operator pooling arrangements
3. Risk-transfer - Nuclear insurance pools and MGAs
4. Risk-transfer - ILS and cat bonds
5. Capital, capacity and underwriting
6. Losses occurring and claims made policy language
208 Sourced from OECD Nuclear Energy Agency
209 Sourced from US NRC
210 Sourced from IAEA/OECD Nuclear Energy Agency
Final Report - MOVE/ENER/SRD/2016-498 Lot 2
Study on the insurance, private and financial markets in the field of nuclear third party liability
Page 91
A. GLOSSARY
The definitions and annotations in this table were obtained from the open sources whose links are provided in the third column. In most cases the definitions were
copied in their entirety. Changes that were occasionally introduced mainly fall in one of the following three categories: swapping of the Dollar sign ($) with the Euro
              N      ringe the rights of their authors, who in most
cases are not indicated on the websites themselves211, but to achieve brevity and clarity considering the audience to which the Report will be available.
Definitions and clarifications in blue are written by the authors of the study.
Definition
Annotations
Source
Actuary
An actuary is a professional statistician who
calculates the risk s associated with insurance
coverage and the likelihood th at claims will be
filed or that benefits will ha ve to be paid out.
Using rel evant statistical data, actuaries also
compute dividends and decide premium rates.
Actuaries need expertise in mathematics,
statistics, and economics to fulfil their
responsibility of evaluating risks and returns
associated with each insurance product offered.
Crucial to an insurance company's operation and
profitability, they help ensure premiums are
offered at a rate that is not only competitive but
also enough to cover the risks of the specific
coverage offered. If the rate is set too high, then
potential customers may not want to purchase
policies. However, if premium rates are too low,
then the insurance comp any may not be able to
cover all the claims policyholders file.
Insuranceopedia
https://www.insuranceopedia.com
(retrieved on 20 March 2019)
Attachment Basis
A provision in reinsurance agreements that
determines whether, and in what manner, a
reinsurance agreement covers a specific loss.
International Risk Management Institute,
Insurance and Risk Management Terms
https://www.irmi.com/term/insurance-
definitions/attachment-basis
(retrieved on 13 March 2019)
Broker
Insurance broker or insurance agent is a person
or firm which acts as an intermediary i n bringing
together clients seeking insu rance cover and
insurance companies offering suitable policies. In
some cases, the agent may simply introduce the
two parties to each other and receive a
Broker vs. Agent
The main differenc e between a broker and an
agent has to do with whom they represent. An
agent represents one or more insurance
companies. He or she acts as an extension of the
Collins Dictionary of Business, 3rd ed. © 2002,
2005 C Pass, B Lowes, A Pendleton, L Chadwick,
D O‘  M A
211 Definitions from the website Investopedia were reviewed by Ms. Julia Kagan, while the authors are not named.
Final Report - MOVE/ENER/SRD/2016-498 Lot 2
Study on the insurance, private and financial markets in the field of nuclear third party liability
Page 92
Definition
Annotations
Source
commission from the insurance company; or the
agent may be employed by a particular insurance
company to sell insurance policies on its behalf,
partly on salary and partly on commission.
Insurance brokers are usually independent
intermediaries who are able to negotiate with a
number of insurance companies on behalf of
clients in order to secure for them the most
advantageous cover and terms, as well as
handling claims and offering general insurance
advice.
insurer. A broker, on the other hand, represents
the insurance buyer.
Capacity
Underwriting capacity is the maximum liability
that an insurance company is willing to assume
from its underwriting activities.
An insurance    
profitability depends on its appetite for risk. The
more risk it assumes by underwriting new
insurance policies, the more premiums it collects
and later invests. When an insurer accepts
additional hazards, through the issuance of
policies, the possibility increases that it may
become insolvent. A company's underwriting
capacity, or the maximum amount of acceptable
risk, is a crucial component of its operations.
To protect policyholders, regulators prohibit
insurance compan ies from underwriting an
unlimited number of policies.
How Insurers Increase Underwriting Capacity
O      
change based on how the factors used to
calculate its capacity change. An insurance
company can increase its underwriting capacity
by und erwriting policies that cover less volatile
risks. As an example, a company may refuse to
write ne w property insurance coverage in a
hurricane-prone zone, but will still cover hazards
from fire and theft. Limiting the risk of policies
written reduces the likelihood that the company
will have to pay out claims.
Investopedia
https://www.investopedia.com
(retrieved on 13 March 2019)

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