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.

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.