O-P

OECD (or OCSE): Organisation for Economic Co-operation and Development, grouping 30 countries that share a commitment to democratic government and market economy.

Payback Period is the period of time (in years) required to recover the cost of the initial investment in new business (i.e. new business first year strain and required capital absorption) calculated by means of a deterministic projection based on “real-world” best estimate assumptions.
 
Pension funds: they aim at providing workers (employees or self-employed workers) with additional pension benefits other than those paid by the public welfare system.
 
Performance indicators: specific indicators selected to meet corporate information needs and used to monitor the company. They can be of a financial, productive, commercial, environmental and social nature, or concern more than one aspect.
 
Period of insurance: period of time in which the insurance cover is in force subject to the payment of the relevant premium.
 
Policy: insurance contract.
 
Preda Code: a self-enforced code of conduct for listed companies.
 
Premium: is the sum the policyholder must pay the insurer; it is effectively the “price” of the insurance policy.
 
Premium / reserve ratio (non-life business): net technical reserves / net premiums underwritten.

Present Value of New Business Premiums (PVNBP): is defined as the present value of the future new business premiums, calculated using year-end assumptions for lapses and other exits and discounted to point of sale using the reference rates.
 
Principle of indemnity: one of the basic principles of non-life insurance. According to this principle, indemnity paid by the insurer should serve to make up for damage or loss suffered by the insured and cannot be a source of income for him/her.
 
Property risks: they include: fire, technological risks, theft, misconduct, suspension of business, hail, etc.
 
Proportional rule: it is a typical rule of property insurance in non-life insurance. It is used in the event of underinsurance, i.e. when the value of insured property is higher than the value stated in the policy at the time of the claim. In such cases, indemnity to the insured does not correspond to the full amount of the loss or damage, but it is reduced in proportion to the ratio between the insured value and the property value at the time of the claim.
 
Protected categories: the disabled, orphans and widows of men who died in the workplace or performing their duties or in war, refugees, victims of terrorism, etc...
 
Psychological damage: damage that does not concern property and can be indemnified only if it is caused by criminal tort. It describes the temporary physical and psychological sufferings of the tort victim (the injured third party).