Advertisement

In-Force Exposure

What Does In-Force Exposure Mean?

In-force exposure refers to exposure units that are currently being exposed to loss.

Insurance companies calculate in-force exposure in order to assess their overall risk at a current moment in time. Calculations such as these help insurers assess whether they have exposed themselves to too much risk or are able to take on more.

Advertisement

Insuranceopedia Explains In-Force Exposure

All measures of exposure essentially calculate vulnerability to incurring losses. In-force exposure simply measures the level of exposure that an insurance company is facing on a given day.

If insurance companies do not keep track of statistics such as in-force exposure, they can quickly lose track of their sustainability levels. For this reason, insurance companies commonly employee math experts called actuaries to calculate factors like in-force exposure. Actuaries and the insights they provide are an insurance companiy's strongest defense against insolvency.

Advertisement

Share this Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Tags

UnderwritingThe Insurance Business

Trending Articles

Go back to top