Underwriting Risk

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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 ?
While the company s underwriting risks remained stable, its capital position increased by around 30% to AUD 15 million in the five years to June 2012, helping Pacific to build up a buffer against stresses.
This high claims paying ability rating reflects Legion's strong operating profitability, conservative investment positioning, adequate statutory capitalization, limited exposure to underwriting risks, and low parent company debt levels.
The trading of underwriting risk via a futures market represents a departure from the bilateral trade of underwriting risks typically observed in the reinsurance market to the anonymous trading of a contingent claims market.
Additionally, they are somewhat more flexible as to the underwriting risks which they are willing to accept.
The name change is a sound business decision, which will permit us to expand our base, spread our underwriting risks and preserve the heritage of our company," says Wulf.
The ratings reflect Max Re's disciplined and flexible approach to underwriting risks, limited investment portfolio downside risk, and favorable parent company financial flexibility.
This follows a return to technical profits at year-end 2003 as the company maintains its technical underwriting discipline, selectively underwriting risks such as yachts and general aviation.
Best's view, and despite the collective risks that expose individual companies to potential shortfalls, the property/casualty industry in total maintains capitalization that adequately supports its asset, credit and underwriting risks, in aggregate.
Prior to 2003, the plan operated unprofitably in the commercial and Medicare+Choice businesses because the quality of supporting systems utilized to predict and manage underwriting risks were deficient.
This growing correlation is driven by the shift in mix toward products that are primarily spread-based and/or equity-based, and away from traditional underwriting risks.
Offsetting factors include the potential negative impact of recent financial difficulties on the group's business position, and concerns over SCOR's ability to control and monitor certain underwriting risks.