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Asset Depreciation Risk

 
Barron's Insurance Dictionary:

Asset Depreciation Risk

One of four types of risks affecting the life insurance company as identified by the society of actuaries .
This risk is associated with losses that the life insurance company may incur as the result of default on the payment of interest (dividends) or principal on bonds, mortgages, general real estate investments, and stocks, as well as the loss in value of these investments resulting from a loss in their market value.
See also general business risk , interest rate change risk, pricing inadequacy risk.

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Related topics:
Risk-Based Capital (insurance term)
Interest Rate Change Risk (insurance term)
Pricing Inadequacy Risk (insurance term)

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Barron's Insurance Dictionary. Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.  Read more

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