View Full Version : Terminology
01-15-2003, 10:38 AM
Has anyone ever heard the term crystalized and uncrystalized used in reference to premiums?
Have no context. One of our auditors just asked me if I had ever heard the term before as one of his other clients had used the term and he didn't have the chance to ask for clarification.
01-15-2003, 11:23 AM
I could picture that being another way of saying "earned premium":
"We wrote $1M in premium last month, but it hasn't crystallized yet."
01-15-2003, 12:49 PM
That's a new one on me.
However, while we're throwing out ideas, it might also be the distinction between the initial underwriter's premium estimate and actual bordereau reports received to date.
01-15-2003, 02:13 PM
01-15-2003, 02:22 PM
I have heard the term used in the UK. One example is for example if you reinsure your product, you can crystallize your assumptions. A synonym is "firm up".
01-15-2003, 04:54 PM
It sounds like a forecast to me, as in crystal ball.
I don't think it would be premium not yet earned, i.e., unearned premium
But if the auditor is interested, it also sounds like it might involve something that is accounted for in bulk, rather than policy by policy. It could involve reinsurance, where a premium forecast is made about a portfolio of business, and premium is booked based on that forecast. Then at some point the forecast is replaced by actual figures.
01-16-2003, 01:15 PM
another: "bordereau" reporting is a term sometimes used in reinsurance to refer to self-administered reporting (bordereau reporting)...it's a schedule whereby the ceding company lists the insureds, premiums, claims, etc
01-17-2003, 04:25 PM
Another possibility might be written premium (eg premium on apps submitted) vs settled or paid premiums.
01-17-2003, 06:14 PM
This is a little like the Picture Captions thread! :lol:
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