Securitization of risk

{
  "id": "MLC-T-INS-003044",
  "term": "Securitization of risk",
  "field": "Insurance and risk management",
  "definition": "The process of transforming insurable risks into marketable securities that can be traded in financial markets. This involves packaging a pool of risks, such as catastrophe risks or life insurance policies, and issuing bonds or other financial instruments whose returns are linked to the occurrence of insured events. Catastrophe bonds are a common example of risk securitization.",
  "url": "https://mlchart.com/terminology/insurance/securitization-of-risk/"
}