Glossary

The "D" ratio is a factor used in the experience rating plan to separate the expected losses into primary and excess losses. A "D" ratio is the normal ratio of primary expected losses to the total expected losses and varies by state and by classification code.

Designated Underwriting Authority Enterprises (DUAE), as promulgated by A.M. Best, is used as a performance assessment to evaluate an entity’s relative ability to perform services on behalf of its insurance partners. Examples include managing general agents (MGAs), managing general underwriters (MGUs), coverholders, program administrators, program underwriters, underwriting agencies, direct authorizations, and appointed representatives. Factors evaluated include sustained growth and global resilience, sufficient capacity, expertise, talent, and technology.

A domestic surplus lines insurer is a surplus lines insurer that is domiciled and licensed in the same state. A surplus lines insurer may be barred from selling surplus lines coverage in its state of domicile.

Derecho is a weather term referring to a widespread, long-lived windstorm produced by a fast-moving line or complex of thunderstorms. Derechos are known for destructive straight-line winds. They are often strong enough to cause the same type of damage as a tornado, but the damage typically spreads in one general direction across a broad, continuous path.

Digital assets are created, stored, or represented items that have value. These assets can be owned, managed, transferred, or used under defined rights or permissions. Documents, images, videos, audio files, cryptocurrencies, tokens, and other digital records are examples of digital assets.

A digital insurer is an insurance company that uses a digital-first operating model to underwrite, sell, service, and manage policies primarily through online, mobile, automated, and data-driven systems. Digital insurers aim to improve speed, efficiency, and customer satisfaction by using cloud platforms, analytics, automation, artificial intelligence, and other self-service tools.

The disaster insurance gap is the amount that remains after insurance is applied to a total economic loss from a covered disaster. It reflects the extent to which insureds—individuals, businesses, communities, or governments—remain financially exposed after events such as floods, tornadoes, wildfires, earthquakes, hurricanes, or other major hazards. A large disaster insurance gap can slow recovery, increase out-of-pocket costs, and place greater pressure on public relief and rebuilding programs.