| Financial Risk |
The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. |
| General insurance contract |
An insurance contract that is not a life insurance contract. |
| Insurance contract |
A contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. |
| Insurance risk |
A risk, other than financial risk, transferred from the holder of a contract to the issuer. |
| Insured event |
An uncertain future event covered by an insurance contract which creates insurance risk. |
| Insurer |
The party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. |
| Life insurance contract |
An insurance contract, or a financial instrument with a discretionary participation feature, regulated under the Life Insurance Act 1995, and similar contracts issued by entities operating outside Australia. |
| Policyholder |
A party that has a right to compensation under an insurance contract if an insured event occurs. |
| Weather derivative |
A contract that requires payment based on climatic, geological or other physical variables. |
