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.
Browse by Subjects
credit default swap (CDS)
risk weighted assets
fire insurance
service charge
See All Related Terms »

dead loss
head office
green shoe
Board of Customs and Excise
public finance