Insurance Risk
/ˈɪnʃʊərəns rɪsk/
Definitions
- (n.) The possibility of loss or damage covered by an insurance policy, assessed to determine premiums and coverage terms.
The insurer evaluated the insurance risk before issuing the policy.
- (n.) The uncertainty concerning the occurrence and extent of liabilities insured by an insurance contract.
Accurately assessing insurance risk is crucial to the solvency of an insurance company.
Forms
- insurance risk
Related terms
See also
Commentary
In legal and insurance contexts, 'insurance risk' involves both the probability and severity of insured losses; precise risk assessment is vital in contract formulation and claims handling.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.