Disintermediation definition
Disintermediation means the risk that interest rates will rise and policy loans and surrenders will increase or maturing contracts will not renew at anticipated rates of renewal.
Disintermediation means the risk that interest rates rise and policy loans and surrenders increase or maturing contracts do not renew at anticipated rates of renewal. If asset durations are greater than the liability durations, the mismatch will increase. Policyholders will move their funds into new products offering higher rates. The company may have to sell assets at a loss to provide for these withdrawals
Disintermediation means the risk that interest rates rise and policy loans and surrenders increase or maturing contracts do not renew at anticipated rates of renewal. If asset durations are greater than the liability durations, the mismatch will increase. Policyholders will move their funds into new products offering
Examples of Disintermediation in a sentence
Disintermediation has the advantage of allowing transactions to be independently reviewed and automatically authenticated, and transactions have the advantage of separating transactions between parties in order to increase the efficiency of the invoicing process.
More Definitions of Disintermediation
Disintermediation means the risk that interest rates rise and policy loans and surrenders increase or maturing contracts do not renew at anticipated rates of renewal. If asset durations are greater than the liability durations, the mismatch will increase. Policyholders will move their funds into new products offering higher rates. The company may have to sell assets at a loss to provide for these withdrawals. + significant 0 insignificant Risk Category a b c d e f Health Insurance -- Other Than Ltc/Ltd* + 0 + 0 0 0 Health Insurance -- Ltc/Ltd* + 0 + + + 0 Immediate Annuities 0 + 0 + + 0 Single Premium Deferred Annuities 0 0 + + + + Flexible Premium Deferred Annuities 0 0 + + + + Guaranteed Interest Contracts 0 0 0 + + + Other Annuity Deposit Business 0 0 + + + + Single Premium Whole Life 0 + + + + + Traditional Non-Par Permanent 0 + + + + + Traditional Non-Par Term 0 + + 0 0 0 Traditional Par Permanent 0 + + + + + Adjustable Premium Permanent 0 + + + + + Indeterminate Premium Permanent 0 + + + + + Universal Life Flexible Premium 0 + + + + + Universal Life Fixed Premium 0 + + + + + Universal Life Fixed Premium 0 + + + + + Dump-In Premiums Allowed 0 + + + + + *LTC Long Term Care Insurance LTD Long Term Disability Insurance
Disintermediation territory, which means that banks stop offering some