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
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.