We have made every effort to keep our website free of jargon, but realise that some expressions might need further explanation. This glossary is intended to help you understand some of the terms used in the insurance, investment and financial services business.
Actuary
Professionally qualified person who makes calculations on which pensions, insurance and investment companies base their products. An Actuary uses statistical theory and probability to evaluate the risk involved in insurance, and therefore the premiums payable by persons taking out insurance.
Agent
An intermediary, bank or other financial organisation that regularly performs services for another in a place or market to which the other does not have direct access. Intermediaries may have agents in foreign countries or on exchanges of which they are not members. Sometimes also referred to as 'correspondent'.
Agent (insurance)
A company or person appointed by an insurance company as its representative and licensed by the MFSA. The agent solicits, negotiates or effects contracts of insurance, and provides service to the policyholder on behalf of the insurer. See Sub-agent.
Allocation rate
Describes how the money paid into a pension is used. The company you invest with will take some of your money for charges (eg administration fees). The amount remaining is the allocation rate.
Annuity
An annuity converts a lump sum (usually from a pension fund) into retirement income.
Assignment
The legal transfer of one person's interest in an insurance policy to a third party. For example: transfer of a policy to a bank as security for a loan.
Asset
Anything that is valuable, useful or earns money. In money terms this is used when talking about investments.
Asset allocation
The spread of investments across the asset classes.
Asset classes
The underlying investments – shares, bonds, property and cash deposits.
Assurance
Life insurance – a contract between the policy owner and the insurer, whereby the insurer agrees to pay a sum of money when the policy owner dies.