The insurance industry relies heavily on acronyms, which can create a significant barrier for people entering the industry, clients, and anyone else unfamiliar with insurance terminology. Experienced insurance professionals are often unaware of how frequently they use acronyms or how confusing they can be to others.
This quick A-Z reference explains common insurance industry acronyms (and related ones) so you can understand the conversation and communicate with confidence. Click each letter to expand the list.
A
- ACV – actual cash value
- AD&D – accidental death and dismemberment
- ALAE – allocated loss adjustment expense
- AL – automobile liability
- AOA – any one accident
- AOC – any one claim
- AOP – all other perils
- AP – additional premium. Learn more
- AR – accounts receivable
- ART – alternative risk transfer
B
- BA – business auto
- BB – boiler and machinery
- BCP – business continuity plan
- BEC – business email compromise. Learn more
- BI – bodily injury
- BI – business interruption. Learn more
- BIC – business income coverage
- BOP – businessowner policy
- BPL – bankers professional liability
C
- CA – commercial auto
- CAT – catastrophe
- CBI – contingent business interruption. Learn more
- CCR – claims-made and reported
- CDR – cloud detection and response. Learn more
- CE – continuing education
- CGL – commercial general liability / comprehensive general liability. Learn more
- CIS – critical infrastructure services
- CISO – chief information security officer
- COI – certificate of insurance
- CPD – continuing professional development
- CPE – continuing professional education
- CPL – contractors’ pollution liability
- CPP – commercial package policy. Learn more
- CRM – certified risk manager
- CRQ – cyber risk quantification. Learn more
D
- DBA – deductible buyback
- DBA – doing business as
- DDoS – distributed denial of service attack. Learn more
- DIC – difference-in-conditions (insurance). Learn more
- DIL – difference-in-limits (clause)
- DoS – denial of service attack. Learn more
- D&O – directors’ and officers’ liability insurance. Learn more
E
- EBL – employee benefits liability
- EDR – endpoint detection and response. Learn more
- EE – employee dishonesty
- EL – employers liability
- ELP – excess loss premium
- EML – estimated maximum loss
- E&O – errors & omissions insurance. Learn more
- EFT – electronic funds transfer. Learn more
- EOL – end of life (product or software). Learn more
- EP – earned premium. Learn more
- EPL / EPLI – employment practices liability insurance. Learn more
- ERISA – Employee Retirement Income Security Act (US). Learn more
- ERM – enterprise risk management
- ERP – extended reporting period. Learn more
- EV – enterprise value
F
- FAC – facultative reinsurance
- FDD – first dollar defence / first dollar defense. Learn more
- FI – financial institutions insurance
- FI PI – financial institutions professional indemnity insurance
- FMLA – Family and Medical Leave Act (US)
- FROI – first report of injury
G
- GA – general agent
- GL – general liability. View glossary
- GWP – gross written premium
H
- HNOA – hired and non-owned auto
- HO – homeowners policy
- HOA – homeowners association
- HVAC – heating, ventilation and air conditioning
I
- IBNER – incurred but not enough reported / reserve. Learn more
- IBNR – incurred but not reported. Learn more
- ICS – industrial control systems
- IoT – Internet of Things
- IT – information technology
J
- No acronyms listed.
K
- K&R – kidnap and ransom
L
- LAE – loss adjustment expense
- LKQ – like kind and quality
- LOB – line of business
- LOL – limit of liability
- LR – loss ratio. Learn more
M
- M&A – mergers and acquisitions
- MBI – machinery breakdown insurance
- MFA – multi-factor authentication. Learn more
- MFL – maximum foreseeable loss
- MGA – managing general agent. Learn more
- MGU – managing general underwriter
- MPL – maximum possible loss
- MPL – miscellaneous professional liability. Learn more
- MTL – minimum and deposit premium
N
- NatCat – natural catastrophe
- NOC – notice of cancellation
- NOL – notice of loss
- NPV – net present value
O
- OCIP – owner controlled insurance program
- OCP – owners and contractors protective liability
- ODL – outside director liability. Learn more
- OEM – original equipment manufacturer
- ORSA – own risk and solvency assessment
- OSLR – outstanding loss reserves
P
- P&C – property and casualty insurance
- PCI-DSS – payment card industry data security standard. Learn more
- PD – property damage
- PI – personal injury
- PII – personally identifiable information. Learn more
- PII – professional indemnity insurance. Learn more
- PLI – professional liability insurance. Learn more
- P&L – profit and loss statement
- PML – probable maximum loss
- POL – property owner’s liability
- PR – public relations
- PSA – professional services agreement
Q
- QC – quality control
R
- RaaS – ransomware-as-a-service. Learn more
- RCV – replacement cost value
- RFP – request for proposal
- RIBO – Registered Insurance Brokers of Ontario
- RITC – reinsurance to close
- RMS – risk management system
- RPL – replacement cost loss
- RWI – representations and warranties insurance. Learn more
S
- SCR – solvency capital requirement
- SEF – social engineering fraud. Learn more
- SII – Solvency II
- SIR – self-insured retention. Learn more
- SIU – special investigative unit. Learn more
- SLA – service level agreement
- SOC – security operations centre
- SOX – Sarbanes-Oxley Act
- SP – salvage proceeds
- SRO – self-regulatory organization
T
- T&C – terms and conditions. Learn more
- Tech E&O – technology errors and omissions insurance. Learn more
- TIV – total insured value
- TOBA – terms of business agreement. Learn more
- TPA – third-party administrator
- TPL – third-party liability
U
- UEP – unearned premium. Learn more
- UIM – underinsured motorist
- UM – uninsured motorist
V
- VAR – value-at-risk
- VPN – virtual private network. Learn more
W, X, Y, Z
- No acronyms listed.
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