Insurance risk refers to the risk that:

Question

Quizplus · Accepted Answer

Insurance risk refers to the potential for unexpected or high losses that an insurer may incur due to factors such as inadequate premiums, inaccurate risk assessments, or unexpected events. One common type of insurance risk is underwriting risk, which refers to the risk that actual policy liabilities will be higher than expected or provisions and reserves set aside by the insurer. This can occur if unexpected events such as natural disasters or large-scale accidents result in a large number of claims or if policyholders experience losses that exceed the insured amounts.

Insurance Risk Refers to the Risk That