Residual Value

In business interruption insurance expense incurred by the insured to minimize a loss may result in advantage continuing to the insured after the indemnity period covered by the policy. The value os this advantage is called the residual value.

Residual value insurance

A financial guarantee insurance that protects a lessor against unexpected declines in the market value of leased equipment (vehicles, aircraft, heavy machinery) upon termination or expiration of the lease agreement. The insurance helps the lessor manage the asset value risk inherent in leasing.

Resilience test

Regulatory test imposed on UK life insurers to ensure that they can withstand a specific fall in equity market values without breaching their required margin of solvency. The result is embedded in the calculation of technical provisions instead of being presented as solvency capital. The appointed actuary is expected to apply his own judgement in considering matters relevant to the test.