Description:
Derivative
A derivative is a financial asset or liability whose value depends on (or is derived from) other assets, liabilities or indexes (the "underlying asset"). Derivatives are financial contracts and include a wide assortment of instruments, such as forwards, futures, options, warrants, swaps and composites.
Deterministic scenario
An event, or a change in conditions, with a set probability in which the underlying assumptions are fixed. [Related definitions: Stress test, Scenario test, Stochastic modelling]
Direct approach
A supervisory approach to non-regulated entities which entails licensing or authorisation of entities in an insurance group which do not themselves provide insurance services.
Double gearing
Used to describe a situation where the same capital is used simultaneously as a buffer against risk in two or more legal entities of a conglomerate.
Duration
A measure of interest rate risk on the sensitivity of the value of an asset to changes in interest rates.
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