Disintermediation risk

{
  "id": "MLC-T-INS-001193",
  "term": "Disintermediation risk",
  "field": "Insurance and risk management",
  "definition": "The risk that policyholders will withdraw funds from an insurance product, particularly annuities or life insurance with cash values, in response to rising interest rates or more attractive investment opportunities elsewhere. This can force insurers to sell assets at a loss to meet liquidity demands. Managing this risk involves matching asset and liability durations and offering competitive products.",
  "url": "https://mlchart.com/terminology/insurance/disintermediation-risk/"
}