Ring fence/fencing

{
  "id": "MLC-T-INS-003727",
  "term": "Ring fence/fencing",
  "field": "Insurance and risk management",
  "definition": "A method of separating a specific group of assets and liabilities from the rest of an organization, creating a legally protected subdivision. This practice isolates the ring-fenced operations from financial distress in other parts of the business, and vice versa. In insurance, regulators may require ring-fencing to protect policyholder funds from the insurer's other commercial activities.",
  "url": "https://mlchart.com/terminology/insurance/ring-fence-fencing/"
}