Glossary

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Term Definition Legal instruments

diversification effects

01/01/2016

means the reduction in the risk exposure of UK Solvency II firms related to the diversification of their business, resulting from the fact that the adverse outcome from one risk can be offset by a more favourable outcome from another risk, where those risks are not fully correlated.

Additional Notes

[Note: Art. 13(37) of the Solvency II Directive]