Skip Navigation

A glossary of group risk terms

Know your AAW from your UW, and everything in between, with our glossary of group risk terms. It's packed with definitions, insurance jargon and useful links.

A glossary of group risk terms

Know your AAW from your UW, and everything in between, with our glossary of group risk terms. It's packed with definitions, insurance jargon and useful links.

Group risk is full of acronyms, covering everything from the terms on a policy and the information required to submit a claim through to the names of industry regulators and trade bodies.

To ensure you know your AAW from your RGP, our glossary gives you the lowdown on some of the common group risk terms.

AAW – Actively at Work

An employee is actively at work when they are following their normal occupation and have not received medical advice to refrain from work. When an employer takes out a new policy, adds new members or increases benefits the group risk insurer may ask them to state whether or not all members are AAW.

ABI – Association of British Insurers

A trade association representing more than 200 insurance companies. It serves as the public voice of the sector, informing public policy, engaging with politicians and regulators and encouraging consumer understanding of products and practices.
Home | ABI

DFA – Date First Absent 

This is the date on which an employee is first absent from work. It is used for determining when the deferred period on a group income protection claim begins and ends.

DOD – Date of Death 

A self-explanatory one, this is used in group life assurance.

DTQ – Decline to Quote 

An insurer may decline to offer terms to a company wishing to take out a group risk policy. This may be because it does not fit its criteria or risk appetite for new business.

EI – Early Intervention 

Early intervention is where a group income protection insurer provides support to an employee early in their absence, usually before a claim commences, to identify ways to help them return to work more quickly. It can reduce the length of a claim, prevent some claims altogether and improve an employee’s chances of returning to work. For example, at MetLife, 94% of employees return to work when we are notified of their absence within the first four weeks.

Early Intervention and Claims Hub for Intermediaries | MetLife

Source for statistic: 2556-03-jun-2022-early-intervention-leaflet-2pp-web.pdf (

FCA – Financial Conduct Authority

The regulator of financial services firms and financial markets in the UK. It regulates the conduct of 50,000 firms, protecting consumers by ensuring that financial markets are honest, competitive and fair. 
Financial Conduct Authority | FCA

FCL – Free Cover Limit 

The level of cover that each member of a group risk scheme can have before medical underwriting is required. 

FOS – Financial Ombudsman Service

A public body set up to settle complaints between consumers and businesses that provide financial service. In 2021/22, it received 165,263 new complaints and resolved 218,740 complaints. 

Financial Ombudsman Service: our homepage (

FUB – Forward Underwriting Bar

A forward underwriting bar grants some additional benefit to cover future increases in cover. If a member’s cover exceeds this, they may need to be medically underwritten. 

GPR – General Practitioner’s ‘GP’ Report

A report requested from a group risk member’s GP to provide more detail about the individual’s health and medical conditions. It may be requested, with the individual’s consent, during the underwriting process or when assessing a claim.  

GRiD – Group Risk Development 

An industry body for the group risk sector. It raises awareness of group risk and the benefits they offer to UK businesses and their employees.

Home page - GRiD - Group Risk Development

ILAG – Investment and Life Assurance Group

A trade body representing members from the life assurance and wealth management industries. It acts as a forum for the financial services industry, aiming to build relationships with regulatory, government and industry bodies and facilitate the development of best practice. 

IPT – Insurance Premium Tax 

Insurance Premium Tax (IPT) is a tax on general insurance premiums. The standard rate is 12% although a higher rate of 20% applies to some products such as travel insurance. Long-term insurance, including group risk, is exempt from IPT.

Insurance Premium Tax: guide for insurers - GOV.UK (

LOA – Letter of Authority

A letter that authorises a third party (I.e. an intermediary) to act on the employer’s behalf. It will detail the tasks the intermediary can do for the employer.

NIC – National Insurance Contributions

National Insurance contributions are paid by employed and self-employed workers to qualify for certain benefits including the state pension. They are also paid by employers.

National Insurance: introduction: How much you pay - GOV.UK (

NOB – Nature of Business

When determining the price of cover, an insurer will consider the nature of business for a company seeking group risk insurance. The nature of the business can affect the level of risk, and therefore affect the price to the insured.

NWT – No Worse Terms

This can apply where a company is switching its group risk cover to a new insurer or to a different policy with the same insurer. The new insurer may offer no worse terms, meaning they will continue to apply the medical underwriting that was in place on the previous policy.

PRA – Prudential Regulation Authority

Established following the financial crisis of 2007, the PRA supervises around 1,500 financial institutions including banks and insurance companies, ensuring they act safely and reduce the risk of getting into financial difficulty.

What is the Prudential Regulation Authority (PRA)? | Bank of England

RFQ – Request for Quote

A request for quote is sent by an intermediary to obtain a quotation for a group risk policy.

RGP – Rate Guarantee Period

This is the length of the time an insurer will guarantee the unit rate  for a group risk policy. 

RPI – Retail Price Index

The Retail Price Index measures the change in the cost of representative basket of retail goods and services. It is used as a measure of inflation, although the Consumer Price Index is the UK’s official inflation rate. 

Inflation and price indices - Office for National Statistics (

SPA – State Pension Age 

The state pension age is the earliest age at which someone can start receiving their state pension. It is gradually increasing and will reach 67 by 2028, depending on an individual’s date of birth

Check your State Pension age - GOV.UK (

TSA – Total Sum Assured

The total benefit provided through a group risk scheme. 

TSR – Total Salary Roll

The total value of pay across all employees within a group risk scheme. 

UR – Unit Rate

The unit rate is the cost an insurer applies for an employer’s group benefit e.g. for every £1,000 of group life policy benefit. It is based on the risk of the scheme and, where it is used, the insurer will multiply the unit rate by the total benefit to determine the annual premium. 

UW – Underwriter

A person or company who assesses the risk presented by a business seeking insurance and determines the premium they can offer to cover it. 

VAT – Value Added Tax

Value added tax, or VAT, is a tax paid on goods and services. The standard rate is 20% but there is also a reduced rate of 5%, for items such as children’s car seats and home energy, and a zero rate, for most food and children’s clothes.  It does not apply to insurance premiums.

VAT rates - GOV.UK (

Join the MetLife Academy mailing list

Subscribe and get access to new content when it becomes available.