Underwriting Risk

Underwriting Risk

The risk that what an insurance company collects in premiums and investments will not be enough to cover its expenses from paying claims on its policies. This differs from its risk of loss, which is the risk that its income will be insufficient to cover all expenses, not just those related to policies.
References in periodicals archive ?
Through its ALPS suite of products, Russell Group delivers better scenario modelling to give more accurate pricing in underwriting risk management across the specialty insurance classes, including aviation and casualty.
Regulators now suggest that, at a typical health insurer, growth in RBC levels should be about 10 percentage points higher than growth in underwriting risk revenue.
Underwriting Risk Services (Middle East) Limited, the JV of Abu Dhabi National Insurance Company (Adnic) and Talbot Underwriting, has won a licence to operate from the Dubai International Financial Centre (DIFC).
Abu Dhabi National Insurance Company (ADNIC) has set up Underwriting Risk Services (Middle East) (URSME), a managing general agency based at the Dubai International Financial Center (DIFC).
A foreign bank's underwriting of securities to be distributed in the United States is considered an activity conducted in the United States, regardless of the location at which the underwriting risk is assumed and the underwriting fees are booked.
These contracts are based on the underwriting losses of a large pool of policies; accordingly, futures allow for explicit trading of the systematic underwriting risk within a line of insurance, that is, the underwriting risk that cannot be diversified away by writing policies in one line of insurance.
Financial: Terrorists want to do damage to the stability of the world economy: For this reason, modes of transport and financial districts are a bigger underwriting risk than a rural farmer's market.