Description:
Operating ratio
The combined ratio adjusted by the addition of allocated investment return to earned premiums.
Operational risk
The risk arising from the inadequacy or failure of internal systems, personnel, procedures or controls leading to financial loss. Operational risk also includes custody risk.
Option
The contractual right, but not the obligation, to buy or sell a specified amount of a given financial instrument, asset or liability, at a fixed price before or at a designated future date. A call option involves the right to buy the financial instrument. A put option involves the right to sell the financial instrument.
Outsourcing
An arrangement of any form between an entity and a service provider by which that service provider performs a process, a service or an activity which would otherwise be undertaken by the entity itself.
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