What does Index mean? Read on to discover the definition & meaning of the term Index - to help you better understand the language used in insurance policies.
A database used to standardize the trading prices of a commodity and act as the "underlying asset" for the creation of a derivative. For example, the Guy Carpenter Catastrophe Index (GCCI) is used by the Bermuda Commodities Exchange (BME) as the underlying basis (or asset) for setting a value upon its catastrophe options.
We hope the you have a better understanding of the meaning of Index.