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 ?
Pension risk transfer (PRT) is done by one of two methods.
The body is looking again at a PS1.5 billion deal to build both track and overhead power systems as a result of a lack of bidders and "increasing concern" from contractors over risk transfer.
ENPNewswire-August 7, 2019--Prudential Financial Completes Historic Second-Largest Pension Longevity Risk Transfer
"We are pleased to see continued strong participation in our new issue transactions, as well as a robust and liquid secondary market," said Laurel Davis, Vice President of Credit Risk Transfer, Fannie Mae.
Over the coming months Brennan who is senior vice president and head of Pension Risk Transfer (PRT) at Athene, will oversee the flow reinsurance business while continuing to lead the PRT channel.
Each quadrant represents a different business segment with different risk transfer solutions.
He said that whatever solutions for disaster risk transfer we would come up with were not the single solution rather a mix of solutions and multipronged approach needs to be adopted.
CAS 2019-R01 is Fannie Mae's first credit risk transfer transaction of 2019.
Indianapolis-based independent insurance broker, ONI Risk Partners (ONI) has welcomed back Andrea Fehrenbacher in a new role as managing director of placement and risk transfer.
Securities and Exchange Commission, has rated Freddie Mac's risk-transfer transaction, Seasoned Credit Risk Transfer Trust Series 2018-2 (SCRT 2018-2) as follows: --$51,742,000 class M notes 'B-sf'; Outlook Stable.
I am confident our collaborative efforts will help demonstrate the efficacy of a disciplined, CAD-based approach to risk transfer, and enable a market shift from a reliance on manual processes to a more dynamic risk structuring environment."
"Engaging both markets will create more competition and reduce the NFIP's risk transfer costs," FEMA said.