AAL: Average Anual Loss. This is the expected modelled/actual loss, over a certain period of time, and it is based on real/modeled claims data.

AEP: Aggregate Exceedance Probability. It expresses the cumulative probability of all losses (e.g the sum of all possible claims) in a year will exceed a certain loss size or threshold (it takes into account ALL possible claims in a random year. This is done through simulation algorithms and it samples from a hibrid of historical and synthetic possible catastrophe events. Catalogues of events are specified by natural peril and by geographical region).

AIR: Catastrophe Software Risk Modelling company. AIR Worldwide is a Verisk Analytics business.

ATC: Building codes. International system of building codes.

CSR: Corporate and Speciality Risks of a UK Commercial portfolio.

CRESTA: Catastrohpe Risk Evaluation and Standarisigng Target Accumulations used for Catastrophe zoning. (see www.cresta.org, swiss.re)

DLM: Detailed Loss Model. A model wich uses detailed policy information, as Touchstone for AIR or Risklink DLM from RMS.

ECHAM6: CAT model from Max Plank Institut für Metereology, Max Plank Institute for Metereology. ECHAM6 is the sixth generation of the atmospheric general circulation model ECHAM.

EQECAT: Catastrophe Software risk modelling company based in EE UU.

GROSS LOSS: The insurer´s loss after policy deductibles, attachment points and limits are applied.

EIOPA: European Insurance and Occupational Pensions Authority (EIOPA) is part of the European System of Financial Supervision.

LOB: Line of Bussines, for example commercial property, marine…

OEP: Ocurrence Exceedance Probability: probability of a single largest loss exceeds a determined amount threshold.

PLA: Post Loss Amplification . Refers to amplified claim payments due to higher repair costs from a shortage of materials and labour or the the fact mass claims are settled on a blanket basis.

PRA: Bank of England insurance & reinsurance regulator. Prudential Regulation Authority .

PML: Probable Maximum Loss. PML is the anticipate value of the largest expected monetary loss that could result from a catastrophe.

RETURN PERIOD: An estimate of the frequency (in years) that the Re/Insurance portfolio will have a loss of a certain size.

RMS: Software Risk Managment Solution based in EEUU from Dailymail group.

SOLVENCY II: European Re/Insurance regulation. Solvency II reviews the prudential regime for insurance and reinsurance undertakings in the European Union.

TSI: Total Sums Insured.