Glossary of insurance terms
✓ In brief: an insurance term must be interpreted in light of the legislation of the Republic of Kazakhstan, the insurance rules and the specific contract. The glossary helps you find your way around the concepts, but does not replace the terms of the policy.
Reference
How to use
Choose the letter you need and find the definition of a term that appears in a contract, in the rules or in claim documents.
Context
What to keep in mind
One concept may have a special meaning in the law or in a contract. In case of discrepancy, the applicable official document takes priority.
2026 update: the glossary is intended as a reference for understanding insurance terms. The exact meaning of a concept in a specific situation is determined by the legislation of the Republic of Kazakhstan, the insurance rules and the terms of the concluded contract.
А Б В Г Д З И К Л М Н О П Р С Т У Ф Ц Э
А
Underwriter
An employee of an insurance (reinsurance) company whose functions include assessing the insurance risks accepted for insurance and determining the terms of insurance (reinsurance) contracts.
Insurance company agent
An individual or legal entity included in the register of insurance agents that carries out intermediary activity in concluding insurance contracts on behalf of and on the instructions of one or several insurance companies under an agency agreement.
Actuarial calculations
Economic and mathematical calculation methods used by an actuary when calculating insurance reserves.
Actuary
An individual holding a licence from the authorized body who carries out activity involving economic and mathematical calculations of the amount of obligations and insurance premium rates under insurance and reinsurance contracts, and who also assesses the profitability and returns of the types of insurance that an insurance (reinsurance) company carries out and plans to carry out, in order to ensure the necessary level of solvency and financial stability of the insurance (reinsurance) company.
Addendum
A written supplement to a previously concluded insurance or reinsurance contract that contains changes, agreed between the parties, to the previously stipulated terms of the contract. It may entail a change in the insurance rate and corresponding settlements under the policy.
Adjuster
An employee of an insurance (reinsurance) company whose functions include reviewing claims for insurance payment and assessing the damage from an insured event.
Average adjuster (loss commissioner)
An expert, an authorized representative of the insurer, who, by agreement with the policyholder, establishes the cause, nature and amount of insurance losses.
Agent's commission
Payment for an agent's services in performing the relevant duties (instructions) in the interests and on behalf of the insurance company under the terms of the agency agreement.
Abandonment
The policyholder's renunciation of its rights to the insured property in favour of the insurer in return for the full sum insured. A policyholder resorts to abandonment in order to be relieved of the obligation to prove the extent of the losses it incurred as a result of the insured event.
Basic concepts found in every contract
Terms beginning with the letter "А" are more often found in the professional environment. Below are the concepts without which it is hard to read any policy. A complete list of definitions is collected in the glossary of insurance terms section.
Insurer
An insurance company that holds a licence to carry out insurance activity and assumes the obligation to make an insurance payment when an insured event occurs.
Policyholder
A person who has concluded an insurance contract with an insurer and pays the insurance premium.
Insured
A person whose life, health or property interests are insured. The insured may be the same as the policyholder or may be another person — for example, an employee of the company.
Beneficiary
A person designated as the recipient of the insurance payment. In collateral and leasing insurance, the beneficiary is often a bank or a lessor.
Sum insured
The monetary amount up to which the insurer is obliged to make a payment under the contract. In property insurance it generally cannot exceed the actual value of the object.
Insurance premium and insurance rate
The premium is the payment for insurance that the policyholder pays to the insurer. The rate is the percentage by which the premium is calculated, usually as a percentage of the sum insured.
Insured event and insurance payment
An insured event is an event provided for by the contract upon which the insurer is obliged to make a payment. An insurance payment is the amount paid within the sum insured and subject to the terms of the contract.
Deductible
The part of a loss that is not compensated by the insurer. A conditional deductible releases the insurer from payment if the damage does not exceed its amount; an unconditional deductible is subtracted from every payment.
Exclusions
Events and circumstances in which no insurance payment is made even if damage has occurred. Exclusions are listed in the insurance rules and the contract.
Subrogation
The transfer to the insurer that has paid compensation of the right of claim against the person responsible for the loss, up to the amount paid.
Reinsurance
The transfer by an insurer of part of an accepted risk to another insurance or reinsurance company. For more, see the reinsurance section.
Insurance broker
A legal entity holding a licence for intermediary activity in the insurance market that helps the client choose insurance terms and supports the contract and the settlement of losses. In Kazakhstan, the activity of brokers is licensed and supervised by the ARDFM.
How to use the glossary in practice
- read the definitions of terms in the insurance rules themselves — they may be narrower or broader than the generally accepted ones;
- pay attention to the wording of risks and exclusions: a single word can change the scope of cover;
- if a term in the contract is defined differently from the law, ask the insurer which meaning applies;
- keep correspondence and written clarifications — they will be useful when settling a loss.
If the wording of a contract raises questions, you can get a consultation from a broker before signing the policy.