REINSURANCE: A key element of reinsurance, whereby insurance risk is shifted from the reinsured to the reinsurer under a reinsurance agreement. In order for a reinsured to receive statutory and GAAP credit for reinsurance, a threshold of both underwriting risk and timing risk transfer must be achieved. See Risk.
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UK: One party transfers the financial effects of his loss to another party. In insurance the insured transfers the possibility of loss to the insurer in return for the premium. Other forms of risk transfer can be found in contracts and leases that are used to transfer risk from one party to another to the extent permitted by law (see UNFAIR CONTRACT TERMS ACT 1977). Risk transfer of a different kind occurs where an activity is transferred from one party to another, e.g. the sub-contracting of a hazardous process to another party, but this could also be termed an example risk avoidance.
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Using funds that originate outside the organization.