Contingency reserve


Reserve for future abnormal payment related to insurance risk and assumed interest rate risk, etc.

Types of risk are as follows.
Insurance risk: Risk of incurring losses from payment of insurance claims, etc., resulting from a higher-than-expected mortality rate
Assumed interest rate risk: Risk that the actual investment return will fall below the expected return used as a basis calculating policy reserves
Medical insurance risk: Risk where payment of insurance benefits, etc., related to medical insurance and others increases quickly

Related Term