Definition of "Matching"
Requiring assets and liabilities of an insurance company to go up or down together on a proportional basis. The duration of the asset and liability should be approximately the same. For example, an insurance policy of 12 months in duration should be identified with an asset that matures in 12 months. As interest rates go up, thereby requiring the insurance company to pay a higher return to its policyholders, the interest earned on investments should go up on a proportionate basis.
Popular Insurance Terms
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Annuity payments that continue for the life of the annuitant. ...
Person who engages an agent or broker for advice and possible purchase of insurance. ...
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Tax assessed by the states as a payroll tax on employers to pay for unemployment compensation ...
Estimate of the funds necessary to maintain the life-style of a family after the death of the wage earner. ...
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