Insurance requires the assumption of insurance risk by the insurer. In the event of a claim, the insured does not suffer the financial impact of a potential economic loss to the extent that insurance risk has been assumed by the insurer, because the loss is offset by the insurance payment.
TPG2020 Chapter X paragraph 10.201
Category: E. Captive insurance, E.2. Accurate delineation of captive insurance and reinsurance, OECD Transfer Pricing Guidelines (2017), TPG2020 Chapter X: Financial Transactions | Tag: Assumption of risk / Risk assumption, Captive insurance, Financial transactions, Risk deversification
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