The mismatch between index payouts and actual losses: an adverse event with no payout (adverse basis risk) or a payout with no adverse event (positive basis risk), as framed by the IAIS.
Glossary term
Basis risk
The mismatch between index payouts and actual losses: an adverse event with no payout (adverse basis risk) or a payout with no adverse event (positive basis risk), as framed by the IAIS.
Institution GRA