What Does Retention Ability Mean?

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What does Retention Ability mean? Read on to discover the definition & meaning of the term Retention Ability - to help you better understand the language used in insurance policies.

Retention Ability

Retention Ability

The amount of aggregate incurred losses that an insured can retain in any one financial reporting period without creating an adverse impact on cash flow or earnings. Compare to Risk Tolerance.

We hope the you have a better understanding of the meaning of Retention Ability.

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