What Does Jump Process Mean?

Free Business Insurance Quote Click Here
What does Jump Process mean? Read on to discover the definition & meaning of the term Jump Process - to help you better understand the language used in insurance policies.

Jump Process

Jump Process

Pricing motivations underlying catastrophe bonds. Instead of a gradual supply of information slowly affecting a high-yield bond's pricing (Brownian motion), cat bond pricing is subject to large, sudden jumps, such as the appearance of a pending hurricane bearing down on property covered by the bond's reinsurance.

We hope the you have a better understanding of the meaning of Jump Process.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


Free Business Insurance Quote Click Here