By RENAISSANCE ALLIANCE
Each industry has its own jargon and set of acronyms used by insiders. Sometimes it is technical terms or language that people use to describe an exact process, part or concept; Sometimes they are slang that develops among colleagues in an organization or industry over time. But industry-specific terminology can be confusing, misunderstood or even forgiving to outsiders. Think about the last time you tried to communicate with a car mechanic, a computer technician or any other specialist and you could not understand what they were telling you. It can be frustrating!
Insurance is no different. It is a profession that has many industry-specific terminologies related to financial products and various acronyms. Here are some previous blog posts about some insurance terms that are often used and that customers often question:
But there are many other terms that are probably unknown to a buyer – especially when you get into commercial insurance. For example, what is a BOP? An actuary? A captivity? Underwriting? Reinsurance? Premium? Loss ratio? We could continue, but instead we point you to some good insurance authorities that maintain different dictionaries.
Health insurance is a little different. with its own distinct language. Here are some resources:
Of course, if you are buying insurance and you find the terminology difficult to understand, there is an alternative to doing your own online survey – you can call your local insurance agent to talk about it. This is where local agents stand out. They can interpret the unknown jargon or talk to you about the pros and cons of different options and decision points. See our previous post that talks about the value, expertise, and legal services that agents provide around the clock: The value of working with a local, independent insurance agent.