Warning! You are currently not signed in. Any products you have purchased will not be displayed until you Sign In


A measure of the volatility inherent in any risk-taking venture or activity. Also indicates the manner in which two or more risk profiles react, when combined, to create either greater or lesser overall volatility. If multiple risk profiles are uncorrelated, lower overall volatility may result compared to the individual risk profiles prior to the combination. For example, a book of high-excess property insurance business is not correlated to a group of directors and officers (D&O) liability policies and would therefore produce lower overall volatility if an insurer were to write both types of coverage. See also Correlation/uncorrelation.

More Risk Finance and Captives Information from IRMI
Books, Manuals, Newsletters IRMI
Risk Financing IRMI Online ReferenceConnect
Captive Insurance Company Reports IRMI Online ReferenceConnect
Captive Practices and Procedures IRMI Online ReferenceConnect
Captives and the Management of Risk IRMI Online ReferenceConnect
The Risk Report IRMI Online ReferenceConnect
Free Risk Financing Articles in IRMI.com
25 Risk-Conquering Ideas
Risk Finance
Captive Insurance
Additional Insured Insurance Law
Insurance Continuing Education Courses from IRMI
Ethics Considerations for P&C Insurance Professionals (CE)
Ethics in the P&C Insurance Workplace (CE)


Social Media