Risk transfer

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Risk transfer

The shifting of risk through insurance or securitization of debt because of risk aversion.

Risk Transfer

The reduction of risk to a position by buying an insurance policy or taking an offsetting position. For example, a person may reduce the risk of loss due to medical expenses by buying health insurance. Likewise, a person may reduce the risk of loss to a long position by entering an equal but opposite short position. See also: Hedge.
References in periodicals archive ?
ADB is committed to exploring risk transfers in its sovereign portfolio under the Action Plan to Optimize Balance Sheets of Multilateral Development Banks endorsed by the G20 in November 2015.
Global Banking News-September 23, 2016--Fannie Mae completes credit insurance risk transfers
Pension risk transfers are not limited to plans that have been closed or frozen.
The agency says it is adjusting the 2015 premium filing procedures and instructions to require after-the-fact reporting of certain defined benefit (DB) plan risk transfers through lump-sum windows and annuity purchases.
Insurance (and Banking and Securities) Commissioner William White, who is very experienced in captives and the various kinds of risk transfers that can be done, and multiple scenarios for their use, and who oversees as a regulator a thriving captives industry in D.
In transferring risk to the private sector, the public partner seeks to put in place incentives for the private contractor to perform efficiently but also endeavors to minimize risk premiums by limiting risk transfers to those risks which the private sector is best placed to manage (European Commission DGRP, 2003).
Too often, however, the importance of the deal takes precedence, and risk transfers are not properly effected, making your organization potentially responsible for loss exposures for which others should be responsible.
The purpose of this research study was to expand nursing science through the collaborative investigation of registered nurses' experiences of the effect of insurance risk transfers such as capitation contracts, managed care programs, Diagnosis Related Groups (DRG) financing mechanisms and intra-organizational insurance risk transfers, on caregiving environments, registered nurses, and their clients.
Some of these insurance products may result in incomplete risk transfers, which could cost your camp money and threaten your assets.
For risk transfers involving working layer risks (as opposed to catastrophic risks), how much empirical data exists to support data on loss ratios and recoveries for any specific business line being reinsured or hedged?
Additional factors that could cause results to differ materially include, but are not limited to: the adoption rates, if any, of derivative trading in commercial property in Europe; the failure of a derivative market for commercial property in Europe to be perceived as a more cost effective and efficient method of allocation strategies, short-term hedges, risk transfers and geographical diversification; and the failure of a commercial property derivative market in Europe to develop as rapidly as have derivative markets for other asset classes.
The International Swaps and Derivatives Association (ISDA) offered preliminary reaction to the Financial Services Authority (FSA) Discussion Paper on Cross-Sector Risk Transfers.