Investment risk

{
  "id": "MLC-T-INS-001918",
  "term": "Investment risk",
  "field": "Insurance and risk management",
  "definition": "The potential for an insurer's invested assets to lose value due to factors such as interest rate changes, market fluctuations, or credit defaults. This risk affects the insurer's ability to meet future policyholder obligations and maintain its capital adequacy. Insurers manage this exposure by diversifying their investment portfolios across different asset classes and adhering to regulatory guidelines on permissible investments.",
  "url": "https://mlchart.com/terminology/insurance/investment-risk/"
}