Duration Averaging
Definition of "Duration averaging"
Disciplined approach to managing an insurance company's bond portfolio duration. When interest rates rise, the average maturity and duration of the bond portfolio is lengthened, resulting in the portfolio becoming more aggressively positioned to take advantage of the falling bond prices. Conversely, when interest rates fall, the average maturity and duration of the bond portfolio is shortened, resulting in the portfolio becoming more defensively positioned to take advantage of the rising bond prices.
Popular Insurance Terms
Program of health care designed for the prevention and/or reduction of illnesses by providing such services as regular physical examinations. This care is in opposition to curative care, ...
Same as term Associate in Automation Management: professional designation earned after the successful completion of three national examinations given by the insurance institute of America ...
Endorsement to the commercial general liability insurance (CGL) policy that provides liability coverage to an insured business for damages anywhere in the world. Policies typically have ...
Coverage for robbery of the payroll of a business. Coverage applies to money and checks from the time the payroll is withdrawn from the bank until it is distributed to the employees, ...
New rule entitled "Accounting and Reporting for Reinsurance of Short-duration and Long-duration Contracts," which requires the insurance company to report all assets and liabilities ...
Protection against the death of an individual in the form of payment to a beneficiary usually a family member, business, or institution. In exchange for a series of premium payments or a ...
Physiological or psychological condition that prevents an insured from performing normal job functions. ...
Extent of the loss caused by accidents. Used in predicting the dollar amount of losses upon which the premiums are based. ...
Set of standard safety guidelines adopted by many states to help provide uniformity in building construction and guard against fire hazards and other unsafe conditions in buildings. ...
Have a question or comment?
We're here to help.