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.
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.