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insurance

definition

A financial arrangement to reduce risk. The purchaser of insurance pays a fixed amount, in return for which the seller agrees to pay some larger amount if an unlikely adverse event occurs. Source: Deardorffs' Glossary of International Economics.

Related Terms

 • FOB  • cost of carry  • holding cost  • medical insurance  • reinsurance  • fixed expenses  • National Insurance number  • include
 more related terms