Finite risk insurance

Term · Insurance and risk management · MLC-T-INS-001518

A type of insurance or reinsurance contract that blends risk transfer with risk financing, covering high-severity, low-frequency losses over a multi-year period. The agreement limits the insurer's potential profit or loss to a specified amount, and the insured party shares in the underwriting results through experience-based adjustments. These arrangements are subject to accounting standards, such as FASB Statement No. 113 in the U.S., which require a sufficient transfer of insurance risk to be treated as insurance.

Table 1. Record
Identifier	MLC-T-INS-001518
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-001518",
  "term": "Finite risk insurance",
  "field": "Insurance and risk management",
  "definition": "A type of insurance or reinsurance contract that blends risk transfer with risk financing, covering high-severity, low-frequency losses over a multi-year period. The agreement limits the insurer's potential profit or loss to a specified amount, and the insured party shares in the underwriting results through experience-based adjustments. These arrangements are subject to accounting standards, such as FASB Statement No. 113 in the U.S., which require a sufficient transfer of insurance risk to be treated as insurance.",
  "url": "https://mlchart.com/terminology/insurance/finite-risk-insurance/"
}

Record 1,398 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.