Insurance technology glossary
50 insurance distribution and insurtech terms, defined in plain English for practitioners.
In short: this glossary defines 50 terms used in Indian insurance distribution and insurtech, from regulatory concepts like ISNP and POSP to operational metrics like persistency and attach rate. Each definition is self-contained, written for practitioners at banks, brokers, NBFCs and insurers.
A
- ABHA
- Ayushman Bharat Health Account.
- Assisted Journey
- A digital sales flow driven by an RM, agent or POSP on behalf of the customer, as opposed to self-serve.
- Attach Rate
- The percentage of eligible transactions (loans, purchases) where the customer also buys the offered insurance.
B
- Bancassurance
- The distribution of insurance products through banks.
- Benefit Illustration
- A standardized projection of a policy's benefits and charges that must be shown to (and acknowledged by) the buyer for certain products.
- Bima Sugam
- IRDAI-backed digital insurance marketplace initiative intended as a unified platform for buying, selling and servicing policies.
- Broker (Insurance Broker)
- An IRDAI-licensed intermediary representing the customer, able to place business with any insurer.
C
- Cashless Claim
- A health claim where the insurer/TPA settles directly with a network hospital, so the patient pays only non-covered amounts.
- CBS (Core Banking System)
- A bank's central transaction system.
- CD Account (Cash Deposit)
- A float account an employer maintains with an insurer to fund group policy endorsements (member additions) during the policy year.
- CKYC
- Central KYC Registry.
- Clawback
- Recovery of previously paid commission when a policy lapses, is cancelled or free-looked within a defined period.
- Commission Caps
- IRDAI-prescribed limits on commission payable by line of business and channel.
- Commission Reconciliation
- Matching expected commissions against insurer statements and resolving mismatches.
- Corporate Agent
- An IRDAI-registered entity (often a bank or NBFC) licensed to distribute insurance for up to nine insurers per line of business.
- Credit-Linked Insurance
- Cover attached to a loan that repays the outstanding amount if the borrower dies or cannot pay due to insured events.
- Cross-Sell
- Offering insurance to an institution's existing customers based on their profile and life events.
D
- D2C (Direct-to-Consumer)
- Insurance sold directly to buyers through a brand's own digital storefront without an intermediary sales force.
- Data Residency
- The requirement or practice of storing and processing data within a specific country's borders, a standard expectation for Indian BFSI platforms.
- DMS (Distribution Management System)
- Software insurers use to onboard, enable and monitor distribution partners and channels.
- DPDP Act
- India's Digital Personal Data Protection Act.
E
- Embedded Insurance
- Insurance offered inside another product's journey (a loan, purchase or booking) rather than as a standalone sale, typically via APIs.
- Endorsement
- A mid-term modification to a policy, such as adding or removing group members, address changes or nominee changes, issued as an amendment.
F
- Free-Look Period
- The window (typically 15-30 days) after policy receipt during which a policyholder can return the policy for a refund.
G
- GMC (Group Mediclaim)
- Employer-sponsored group health insurance covering employees (and often dependents) under one master policy.
- GPA / GTL
- Group Personal Accident and Group Term Life.
I
- IRDAI
- Insurance Regulatory and Development Authority of India.
- ISNP (Insurance Self-Network Platform)
- An IRDAI framework permitting intermediaries and insurers to sell and service insurance through their own digital platforms, with prescribed system, audit and grievance requirements.
K
- KFS (Key Facts Statement)
- A concise disclosure document summarizing product features, premium and exclusions.
L
- LOS (Loan Origination System)
- The lender system managing loan applications from lead to disbursal.
M
- Maker-Checker
- A control pattern where one user initiates an action and a second authorizes it.
- MISP
- Motor Insurance Service Provider.
P
- PAS (Policy Administration System)
- An insurer's core system of record for policies: issuance, endorsements, billing and lifecycle events.
- PED (Pre-Existing Disease)
- A condition diagnosed or treated before policy purchase.
- Persistency
- The share of policies still active at defined anniversaries (13th/25th month).
- Portability
- The IRDAI-enabled right to switch health insurers while carrying forward waiting-period credits.
- POSP (Point of Sales Person)
- An individual authorized to sell pre-underwritten insurance products after 15 hours of training and certification under IRDAI rules.
- Pre-Authorization (Pre-Auth)
- Approval from insurer/TPA before planned hospitalization (or at emergency admission) confirming coverage for the treatment at a network hospital.
Q
- Quote-to-Issue
- The end-to-end journey from premium quotation to policy issuance.
R
- Reimbursement Claim
- A claim where the insured pays the hospital and the insurer reimburses admissible expenses after document submission.
S
- Sachet Insurance
- Small-ticket, single-risk covers (e.g., daily hospital cash, trip cover) designed for high-volume digital distribution.
- Specified Person (SP)
- The certified employee of a corporate agent who is authorized to solicit insurance.
- STP (Straight-Through Processing)
- Issuing a policy with zero manual intervention: clean proposals pass rules and issue instantly.
- Suitability Assessment
- The mandated check that a recommended insurance product matches the customer's needs and financial situation, with the assessment recorded.
- Sum Insured / Top-Up / Super Top-Up
- The coverage limit of a health policy.
T
- Tele-MER
- Tele Medical Examination Report.
- TPA (Third-Party Administrator)
- An IRDAI-licensed entity that administers health claims (cashless authorization, hospital network and reimbursement processing) on behalf of insurers.
U
- Unified Insurance API
- A single API abstraction over many insurer integrations, normalizing quotes, proposals, issuance and servicing.
W
- Waiting Period
- The time after policy start during which specified conditions or treatments aren't covered (initial, disease-specific and PED waiting periods).
- Web Aggregator
- An IRDAI-registered platform that displays and compares insurance products online and forwards leads to insurers.
Go deeper than definitions
Four pillar guides that put these terms to work.
Bancassurance in India: the complete guide
How banks build a profitable insurance channel under IRDAI rules.
ISNP and IRDAI digital distribution compliance
What the regulator expects of your systems, plus the audit checklist.
Embedded insurance: the definitive guide
Contextual cover in checkouts, loan journeys and payroll flows.
The insurance broker digitization playbook
From spreadsheet brokerage to operating system in 90 days.
See these concepts working in software
Quoting, issuance, renewals, claims and commission reconciliation on one platform built for Indian distribution.