Matching

Ensuring that damaged property, once repaired, matches the property that was not damaged in the loss.
***
Paying regard, in the selection of assets, to the dates on which liabilities will or may accrue, or the currencies in which they are payable, with the object of ensuring that the realizable value of the assets at any such dates will suffice to discharge the liabilities.

Matching risk

The risk that liabilities and assets are not properly matched. The risk arises from mismatches related to currency and timing, interest rate risk and inflation risk. It is of major importance to life insurers as mismatching could lead to the sale of investments to meet claims as they fall due at a time of low values. In regard to annuities it is necessary to match annuity liabilities with investments of a similar pattern, e.g. fixed income securities. The FSA prescribes asset and liability valuation rules aimed at minimising this risk.