Shortfall risk

{
  "id": "MLC-T-INS-003078",
  "term": "Shortfall risk",
  "field": "Insurance and risk management",
  "definition": "The risk that an investment portfolio's actual return will fall below a target return or a minimum acceptable level over a specific period. In insurance, this relates to the possibility that investment returns on reserves will be insufficient to meet future policyholder obligations. Insurers manage shortfall risk by diversifying investments and matching asset durations to liability durations.",
  "url": "https://mlchart.com/terminology/insurance/shortfall-risk/"
}