Risk transfer

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 ?
announced the publication of a new research report titled "Credit Risk Transfer and De Facto GSE Reform.
Freddie Mac today announced an expansion of its Agency Credit Insurance Structure (ACIS) program with ACIS Forward Risk Mitigation (AFRM), an innovative front end credit risk transfer offering.
6 billion in pension benefits through one pension risk transfer deal.
Rob Schaefer, vice president for credit enhancement strategy and management at Fannie Mae, said, 'We're pleased with the continued interest and growth in our Credit Insurance Risk Transfer programme.
With five separate companies reporting buy-out sales above $1 billion, group annuity risk transfer sales increased 54 percent in 2015, totaling $14.
Summary paragraph: How advisers can help plan sponsors with pension risk transfer
Summary paragraph: How pension risk transfer can fulfill benefit obligations to participants
In particular, the study considers how risk transfer systems such as insurance and derivatives affect the prevalence of solar power generation.
An 18-year employee of Prudential, Kaplan previously led risk transfer and risk management for pension plan sponsors as senior vice president and head of global product and market solutions for its pension and structured solutions business.
This new Branch of Allianz Risk Transfer will effectively take over Allianz's facultative reinsurance operations in the DIFC which were previously carried out by Allianz SE Reinsurance Branch Dubai (Allianz Re Dubai).
The goal of risk optimization is to find a balance between risk retention and risk transfer.