https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ATerm_sheetDefinition:Term sheet - Revision history2026-06-15T00:51:37ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Term_sheet&diff=17842&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-15T15:40:47Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📋 '''Term sheet''' is a concise document that outlines the principal terms and conditions of a proposed [[Definition:Insurance | insurance]] arrangement, [[Definition:Reinsurance | reinsurance]] contract, or insurance-linked transaction before the parties commit to drafting full policy wording or definitive agreements. In the insurance industry, term sheets appear across a wide range of contexts — from [[Definition:Warranty and indemnity insurance (W&I) | W&I insurance]] placements and [[Definition:Insurance-linked securities (ILS) | insurance-linked securities (ILS)]] issuances to [[Definition:Program business | program business]] structures and large commercial [[Definition:Placement | placements]]. The document is typically non-binding (though certain provisions, such as confidentiality or exclusivity, may carry binding force) and serves as a mutual reference point to confirm alignment on key commercial terms before significant legal and [[Definition:Underwriting | underwriting]] resources are deployed.<br />
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🔧 In practice, a term sheet for an insurance transaction will specify core parameters such as the [[Definition:Named insured | named insured]], [[Definition:Policy period | policy period]], [[Definition:Policy limit | limits of liability]], [[Definition:Retention | retention]] or [[Definition:Deductible | deductible]], [[Definition:Premium | premium]] or rate, key [[Definition:Coverage | coverage]] grants, material [[Definition:Exclusion | exclusions]], and any conditions precedent to binding. In a [[Definition:Reinsurance | reinsurance]] context, it might set out the [[Definition:Ceding commission | ceding commission]], [[Definition:Loss corridor | loss corridor]], or [[Definition:Aggregate limit | aggregate limit]]. For ILS transactions such as [[Definition:Catastrophe bond | catastrophe bonds]], the term sheet will detail the trigger type, risk period, expected loss, and coupon structure. Brokers often use the term sheet as a negotiating tool, circulating it between the insured and prospective underwriters to bridge differences on scope, pricing, or structural features before formal documentation begins.<br />
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📌 Getting the term sheet right matters because it anchors the entire downstream documentation process. Ambiguities or omissions at this stage tend to resurface as disputes during policy wording negotiation — or worse, at the point of [[Definition:Claim | claim]]. A well-drafted term sheet reduces the risk of misaligned expectations between the [[Definition:Insured | insured]], the [[Definition:Broker | broker]], and the [[Definition:Underwriter | underwriter]], and it accelerates the path to binding coverage. Across major markets, including [[Definition:Lloyd's of London | Lloyd's]], the US excess and [[Definition:Surplus lines | surplus lines]] market, and Asian specialty hubs like Singapore and Hong Kong, term sheets have become a standard feature of complex commercial and transactional insurance placements.<br />
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'''Related concepts:'''<br />
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* [[Definition:Placement]]<br />
* [[Definition:Policy wording]]<br />
* [[Definition:Indication of interest]]<br />
* [[Definition:Binding authority agreement]]<br />
* [[Definition:Insurance-linked securities (ILS)]]<br />
* [[Definition:Premium]]<br />
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