Insurance risk

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For the customer - or potential customer - of an insurer, insurance risk is the risk of financial loss or other adverse effects resulting from failures in relation to the organisation's insurance purchasing activities.

A simple example would be failing to pay an insurance premium on time, resulting in the organisation being uninsured.


For an insurer, a primary insurance risk is the risk of making losses on the provision of insurance.

The most common cause is a greater than expected number or value of claims, or both.

See also