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.
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.
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