A mismatch in the timing of asset maturities relative to policy benefits requiring either reinvestment or disinvestment by the insurer at uncertain future interest rates is known as:

Question

Quizplus · Accepted Answer

Maturity Mismatch Risk refers to the risk that arises when the maturities of an insurer's assets do not align with the timing of its liabilities, leading to potential reinvestment or disinvestment at uncertain future interest rates.

A Mismatch in the Timing of Asset Maturities Relative to Policy