encours

English translation: liabilities

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:encours
English translation:liabilities
Entered by: Mark Radcliffe
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18:14 Dec 9, 2016
French to English translations [PRO]
Bus/Financial - Insurance / ORSA policy (solvency requirements, risk, etc)
French term or phrase: encours
Hi

I am translating an ORSA (Own Risk and Solvency Assessment) policy for an insurer and there is a section about credit insurance:

La possibilité en assurance-crédit de réduire les garanties sans attendre l’échéance des contrats, et sans impact sur la prime. Les encours sont ajustés au quotidien par les souscripteurs, appelés arbitres, en fonction des informations dont ils disposent sur l’état de santé des entreprises. Les primes ne représentent donc pas une mesure correcte du risque, contrairement aux encours (mesurés par la somme des limites accordées dans les agréments).

I am not sure about "encours" - does it mean "amounts outstanding"?

Thanks

Mark
Mark Radcliffe
United Kingdom
Local time: 22:24
liabilities
Explanation:
This isn’t a suggested translation, but a sort of paraphrase. According to your source text, it is possible to reduce risk in the field of credit insurance without having to wait until the policy ends and without having any impact on the premium. Underwriters (arbitrators) adjust liabilities daily, based on how a company is doing. Contrary to liabilities, premiums are not a good basis upon which to measure risk. Liabilities are measured based on the total of the limits granted.



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Note added at 1 hr (2016-12-09 19:22:46 GMT)
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http://www.eulerhermes.us/credit-insurance/Documents/EH-Cred...


https://eiopa.europa.eu/Publications/QIS/EIOPA_LTGA_Report_1...





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Note added at 22 hrs (2016-12-10 17:07:27 GMT)
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The original describes the basis upon which the “encours” here is calculated:
mesurés par la somme des limites accordées dans les agréments
« measured by the sum of the limits granted in the agreements (policies) ».
In this specific context, the “encours” is clearly specified as the total of the limits granted in the policies. See the definition of “credit limit” below. In the context of credit limit, the “encours” is not adjusted according to the amount of the term remaining. In other words, that term described in the text as “la somme des limites accordées” is not to be considered as being reduced by half when the credit is halfway through its term. Rather it is about daily adjustments “ajustements au quotidien” made according to the financial situation or creditworthiness (see ICISA definition of “commercial risk”).
The source text specifies “total of the limits” and so that means that it is not describing “outstanding liabilities” but the total credit limit.


http://www.chieftradecredit.com.au/downloads/Glossary of Ter...
The ICISA Catalogue of Credit Insurance Terminology.
Commercial risk The risk of a deterioration in the financial situation or creditworthiness of a private buyer, resulting in payment default by or the insolvency of the buyer, not caused by circumstances or occurrences defined as political risk.
Compare these definition to the source text:
Commercial risk: The risk of a deterioration in the financial situation or creditworthiness of a private buyer, resulting in payment default by or the insolvency of the buyer, not caused by circumstances or occurrences defined as political risk.
Credit limit: The maximum exposure specifically approved or otherwise authorised by the insurer in respect of a buyer.
Credit underwriting (Limit underwriting): Assessment by the credit insurer of the financial condition of buyers, before setting a credit limit.
Les encours sont ajustés au quotidien par les souscripteurs, appelés arbitres, en fonction des informations dont ils disposent sur l’état de santé des entreprises



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Note added at 22 hrs (2016-12-10 17:13:54 GMT)
--------------------------------------------------

The two factors to keep in mind here are the context of credit insurance and the meaning of "encours" as described and as being used in the text. So total credit limit authorised, adjusted dailiy according to financial health and not according to where the curser lies on the timeline of the remaing term of the credit.
Selected response from:

Nikki Scott-Despaigne
Local time: 23:24
Grading comment
Thank you Nikki
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1amounts at risk/outstanding exposures
Francois Boye
3 +1outstanding liabilities (here)
ph-b
3liabilities
Nikki Scott-Despaigne
4 -2Outstanding debts (owner side)
Manoj Chauhan


Discussion entries: 1





  

Answers


30 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
amounts at risk/outstanding exposures


Explanation:
'Encours' is an amount of money at risk. Why? Because the text is talking about 'insurance

Francois Boye
United States
Local time: 17:24
Native speaker of: Native in FrenchFrench

Peer comments on this answer (and responses from the answerer)
agree  Daryo
17 hrs
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12 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -2
Outstanding debts (owner side)


Explanation:
..

Manoj Chauhan
India
Local time: 02:54
Specializes in field
Native speaker of: Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: (owner side) means what exactly???
5 hrs

disagree  AllegroTrans: (owner side) means what exactly???
1 day 16 hrs
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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
liabilities


Explanation:
This isn’t a suggested translation, but a sort of paraphrase. According to your source text, it is possible to reduce risk in the field of credit insurance without having to wait until the policy ends and without having any impact on the premium. Underwriters (arbitrators) adjust liabilities daily, based on how a company is doing. Contrary to liabilities, premiums are not a good basis upon which to measure risk. Liabilities are measured based on the total of the limits granted.



--------------------------------------------------
Note added at 1 hr (2016-12-09 19:22:46 GMT)
--------------------------------------------------

http://www.eulerhermes.us/credit-insurance/Documents/EH-Cred...


https://eiopa.europa.eu/Publications/QIS/EIOPA_LTGA_Report_1...





--------------------------------------------------
Note added at 22 hrs (2016-12-10 17:07:27 GMT)
--------------------------------------------------

The original describes the basis upon which the “encours” here is calculated:
mesurés par la somme des limites accordées dans les agréments
« measured by the sum of the limits granted in the agreements (policies) ».
In this specific context, the “encours” is clearly specified as the total of the limits granted in the policies. See the definition of “credit limit” below. In the context of credit limit, the “encours” is not adjusted according to the amount of the term remaining. In other words, that term described in the text as “la somme des limites accordées” is not to be considered as being reduced by half when the credit is halfway through its term. Rather it is about daily adjustments “ajustements au quotidien” made according to the financial situation or creditworthiness (see ICISA definition of “commercial risk”).
The source text specifies “total of the limits” and so that means that it is not describing “outstanding liabilities” but the total credit limit.


http://www.chieftradecredit.com.au/downloads/Glossary of Ter...
The ICISA Catalogue of Credit Insurance Terminology.
Commercial risk The risk of a deterioration in the financial situation or creditworthiness of a private buyer, resulting in payment default by or the insolvency of the buyer, not caused by circumstances or occurrences defined as political risk.
Compare these definition to the source text:
Commercial risk: The risk of a deterioration in the financial situation or creditworthiness of a private buyer, resulting in payment default by or the insolvency of the buyer, not caused by circumstances or occurrences defined as political risk.
Credit limit: The maximum exposure specifically approved or otherwise authorised by the insurer in respect of a buyer.
Credit underwriting (Limit underwriting): Assessment by the credit insurer of the financial condition of buyers, before setting a credit limit.
Les encours sont ajustés au quotidien par les souscripteurs, appelés arbitres, en fonction des informations dont ils disposent sur l’état de santé des entreprises



--------------------------------------------------
Note added at 22 hrs (2016-12-10 17:13:54 GMT)
--------------------------------------------------

The two factors to keep in mind here are the context of credit insurance and the meaning of "encours" as described and as being used in the text. So total credit limit authorised, adjusted dailiy according to financial health and not according to where the curser lies on the timeline of the remaing term of the credit.

Nikki Scott-Despaigne
Local time: 23:24
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 109
Grading comment
Thank you Nikki

Peer comments on this answer (and responses from the answerer)
neutral  Daryo: it's about potential liabilities - as long as the insured doesn't default it's no more than a risk / exposure
16 hrs
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54 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
outstanding liabilities (here)


Explanation:
In the case of credit insurance and ORSA policies, underwriters check regularly how the insured’s financial, etc., situation evolves so as to get a clear, precise estimate of their (the underwriters’) liabilities towards the insured. The better the situation, the smaller the risk (of the credit not being refunded).

As your text says, evaluating the insured's situation is better than (but doesn't exclude) working out the premium(s) paid or outstanding (évolution de la collecte in the text below) since the pace at which they’re paid has nothing to do with the evolution of the risk (premium payment is usually defined in the policy, irrespective of whatever may happen to the insured during the underwriting year, although some policies may exceptionnally provide for a change).


Cf.
Le pilotage de l’activité par la solvabilité nécessite d’intégrer une vision prospective dans l’ORSA… Les facteurs internes doivent également être pris en compte : à ce titre les assureurs doivent mettre en place des business plans prospectifs spécifiant l’évolution future probable de la collecte et des encours des portefeuilles.
http://www.ressources-actuarielles.net/EXT/ISFA/1226-02.nsf/...$FILE/Memoire%20&%20Resume%20BOUISSIERES%20Geraldine.pdf

CL3 because a specialist native speaker might come up with the right term, but I'm pretty certain of my explanation and I believe I've seen 'outstanding liabilities' in that sense in the insurance translations that I've done.

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Note added at 11 hrs (2016-12-10 06:07:42 GMT)
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Just to avoid any confusion, ‘policy’ in the first paragraph of my explanation means ‘the company’s own policy regarding its own assessment of etc.’, whereas in the second paragraph, it means the ‘insurance policies’ that it sells to its clients.

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Note added at 18 hrs (2016-12-10 12:48:31 GMT)
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@ Daryo, about ‘potential’ and ‘outstanding’.

The risk isn’t 'potential'. It’s real; it exists the minute the insurer is… ‘on risk’ (set insurance phrase).

What does change is its impact on the insurer; depending on the type of policy or on the nature of the insured risks, part of the exposure to the risk may no longer exist at one point but the risk itself is still there. For example, if a motor policy is in the middle of its duration, 50% of the risk no longer exists, but 50% is ‘outstanding’ according to insurance terminology. That's much more serious from the insurer’s point of view than merely ‘potential’ because the insurer is effectively on risk, not potentially . In Mark's case, the impact on the insurer depends on the insured's financial, etc. health (highs and lows determine the insurer’s liabilities towards the insured).

As for ‘outstanding’ from a tax law perspective: in all the countries that I know of, insurers are allowed by their tax authorities to set money aside for outstanding losses, liabilities, uncollected premiums and so on, but not for ‘potential’... whatever.


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Note added at 23 hrs (2016-12-10 17:59:03 GMT)
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@ Nikki,

Did I write 'adjusted a/c to term of credit remaining' ? I don't think I did as an answer (but as an example, yes).

What I did write to support my answer : ‘underwriters check regularly how the insured’s financial, etc., situation evolves + 'In Mark's case, the impact on the insurer depends on the insured's financial, etc. health (highs and lows determine the insurer’s liabilities towards the insured)'.

Bon weekend !

ph-b
France
Local time: 23:24
Specializes in field
Native speaker of: Native in FrenchFrench

Peer comments on this answer (and responses from the answerer)
agree  Chakib Roula
2 mins
  -> Thank you.

neutral  Daryo: it's about potential liabilities - as long as the insured doesn't default it's no more than a risk / exposure
17 hrs
  -> Except it isn't part of ins. terminology in that context. I've never heard of 'potential liabilities' here, only of outstanding premiums, outstanding losses, etc. but please provide examples. Thank you.

neutral  Nikki Scott-Despaigne: A clear illustration of "o/standing". Hwvr, I don't think it matches the meaning in credit ins. where the ST describes "encours" as the "somme des limites" which is adjusted daily a/c to financial condition, not adjusted a/c to term of credit remaining.
22 hrs
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