What Does Risk Adjustment Investment Mean?

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

Risk Adjustment Investment

Risk Adjustment Investment

Describes the funds, or capital, specifically identified to pay for the risk that is not transferred to a counterparty or an insurer. Such risk is commonly referred to as a retained risk. The difference between risk-adjusted investment yields and other normal business investments yields is known as the opportunity cost of risk.

We hope the you have a better understanding of the meaning of Risk Adjustment Investment.

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